25,000 crore meant to improve basic amenities, viz., water supply, sanitation, solid waste management, etc. which are expected to improve the quality of life both in rural and urban areas. As regards States’ initiatives, many States have embarked upon the path of fiscal correction and consolidation in the recent period.
Increase in the Central transfers in the light of TFC recommendation has a comforting impact on State finances. With the debt relief benefits linked to enactment of the Fiscal Responsibility Legislation (FRL) by the TFC, there has been increasing incentive to observe fiscal discipline.