20 DEC,2020 | MEDC
For enhancing the efficacy of policymaking, there is a need to revisit Centre-state relationships amidst the country’schanging socioeconomic environment. Over time, the division of responsibilities between the Centre and the states has got increasingly blurred, and that does not bode well for the efficacy of public policy. The existing arrangements governing Centre-state relations in all spheres – legislative, executive and financial – are proving to be inadequate in meeting the rising aspirations of Indian society, and so may need modification. GST remains a contentious issue in federal relations, and so, the fiscal consolidation roadmap of the Centre and the states needs to be realigned more harmoniously. If we fail to do that, India’s entire financial system is jeopardized. If vocal for local is to be realized, our federal system should be flexible enough to allow states to innovate and adapt at their own pace to the changing times. This applies equally to a lower level … the relations between the state government and the local governments. To enhance our global stature, we first need to put our own house in order.
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