Revenue transfer to states

OUR Prime Minister, as chairman of the National Finance Council, announced two important measures that are critical for assisting states to have a bigger share of national resources which, in my view, will give real meaning to the concept of shared prosperity.

One, all water debts to the federal government would be written off. In future, state water projects would be financed not with federal loans but federal grants. This will certainly relieve states of the heavy burden of repaying federal loans. Water loans account for a major proportion of state debts to the federal government.