By the Way

Federal freedom

What is the power of the central government when it deals with the States? The central government manages the finance, defence and foreign affairs in letter and spirit. In his announcement from the Red Fort on August 15, Narendra Modi disbanded the Planning Commission and opened a new debate in the ministries. If sources are to be believed, the new planning dispensation is of the opinion that the budgetary provision for the States will be transferred to the respective States in one tranche. Now the Secretaries and Joint Secretaries in the ministries are bewildered. The States report to different ministries for financial sanctions from time to time and ministries keep monitoring the schemes. If the money is transferred in one go, there will be no control or audit mechanism. Senior bureaucrats feel that Modi must have been offended by the federal mechanism of the Congress party but the new mechanism being implemented will open a Pandora’s box as the States have poor financial management and most of them are running on overdraft. The bureaucrats are afraid that if the money is passed on to the States in one go, it will be very difficult to stop misuse of the funds. It may create more financial indiscipline among the States. But who is bothered?

Click to comment

You must be logged in to post a comment Login

Leave a Reply

To Top
Latest Articles
close slider

Lastest Articles

 
From the Editor : Anil Tyagi
 
Corruption : From Raj to Rafale 3 : Opium of India Inc
 
Cover Story : The chosen ones
 
Governance : Central Bureau of IRONY
 
Governance : Mutual Benefit Club
 
Governance : Academic autocracy and authoritarianism?
 
Governance : Exercise in futility
 
Governance : Create Pockets of Tourist Excellence
 
EXPOSE : An intriguing deal
 
SILLY POINT : A tale of two handkerchiefs
 
Bric a brac : Trouble in neighbourhood
 
Bric a brac : Jewel of India
 
Bric a brac : Kejriwal eyes Haryana
 
Bric a brac : INLD no more
 
By the way : Time to party!
 
By the way : Unique problems
 
By the way : Deactivating investigations
 
By the way : Federal ruptures