Who Benefits from Industrial Incentives? A Study of Capital Investment Subsidy in Karnataka
Capital investment subsidy is an important fiscal concession aimed at promotion of industry in the backward regions. Government has sharply enhanced the scope and volume of concession during the reform phase. Concomitant to this amount of subsidy released has sharply increased. However, the scheme has not served its purpose very well as its financial benefits have largely accrued to regions that did not deserve subsidy, such as Bangalore Urban district, and many such units have ceased to exist.
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