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<b>Letters:</b> Funding for states

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Business Standard New Delhi
Last Updated : Apr 15 2015 | 9:42 PM IST
This refers to A K Bhattacharya's column "Empowering the states" (New Delhi Diary, April 15). The National Democratic Alliance (NDA) government's schemes and initiatives seem to have more of a spin than substance. It is very clear that what the Centre will give to the states through an "unprecedented" increase is all set to be taken back by reducing and stopping the funding of their programmes and other half fiscal rules. So, the trumpeted decision to "empower states with more resources" is nothing but an illusion. It is not even a bitter pill, which could be swallowed for a long-term solution to a chronic problem.

It is true that no scheme is without flaws and deficiencies. But they should be manageable. Above all, for ensuring the fair allocation of funds to states, the NDA government must adopt a holistic approach and an even-handed attitude. The National Institution for Transforming India (NITI) Aayog can play a big role in this matter, provided the powers that be give it a free hand and do not use the allocation of funds as a bargaining chip against the states, especially those ruled by the Opposition, for their own partisan ends.

Tarsem Singh Hoshiarpur

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First Published: Apr 15 2015 | 9:02 PM IST

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