Treating States as Partners
- Hueiyen Lanpao Editorial :: February 26, 2015 -
While accepting of the 14th Finance Commission recommendations by Narendra Modi led Government, it has also tried to exorcise the ghosts of centralized planning under the persuasive spell of diminishing federal space.
In the letter forwarded to Chief Ministers of States, the Prime Minister made it clear that his Government has been working to strengthen federal polity and promote cooperative federalism.
Finding plausible rationale and the context under which the Centre had accepted the recommendations of the 14th Finance Commission, the BJP led Union Government has tried to kill two birds with one stone.
This is one of the many reasons why Modi could claim that his Government had noted that real and functional Federal Governance is the only vehicle to achieve the objectives of strengthening “federal polity” and promoting “cooperative federalism.”
Under the mantra, the Prime Minister can now claim that the Centre is committed to the idea of “empowering States” and allowing them to chalk out their programmes and schemes with greater financial strength and autonomy.
While setting the rhythm according to ideal federal tune, Modi also made it clear that the States have to observe financial prudence and discipline.
This perhaps is one indicator of some doubts lingering over the New Delhi dispensation while the clouds of financial mismanagement by many States in the past were yet to disappear from the horizon.
Whether or not one swears by the motive behind the Prime Minister’s decision, he also linked the acceptance of the 14th Finance Commission with justifications on why and how the Centre has replaced the Planning Commission with the NITI Aayog.
The 14th Finance Commission has recommended a record increase of 10% in the devolution of the divisible pool of resources to States. The Centre will start transferring a much bigger share of Central taxes to States.
Now, it is for the States to decide how far certain bonanza gifted through the acceptance of the recommendations of the 14th Finance Commission could sow the seeds of rejuvenating the States’ health, financial or otherwise.
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