Leading economists in a meeting with 15th Finance Commission held in New Delhi on Thursday said that permissible limits on borrowings under fiscal consolidation roadmap needed to be equally applicable to Centre and states.
Economists agreed that it would be realistic to use contemporary population data, but weightage should be assigned to population and also rewards for population stabilisation policy.
The meeting, which was chaired by the chairman of 15th Finance Commission also discussed uncertainty pertaining to Goods and Service Tax (GST).
The committee said that taxation capacity of states and devolution formula needed to be formed by equity, justice and uniformity.
They blamed power sector and UDAY bonds for the stressed state finances.
The future of centrally sponsored schemes remained problematic and a holistic view needs to be taken, said the economists.