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Biztro
outlookindia.com
2016-02-20T01:18:08+05:30

The politics of fiscal  federalism

A committee of chief secretaries of various ministries and departments burning the midnight oil to evolve a formula for devolving central funds to states for implementation of around four dozen centrally-sponsored schemes. In the past, the fund allocation depended much on the state’s ability to negotiate and the willingness of the former Planning Commission to comply. Ostensibly doing away with the culture of doling out favours, the Arvind Panagriya-fronted Niti Aayog has set the ball rolling for framing a new dispensation formula. Will it be based on performance, utilisation or eventually become a political tool? We’ll know by the time the Budget is announced.

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