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LATEST NEWS UPDATES | Whither decentralization? -Yamini Aiyar and TR Raghunandan

Whither decentralization? -Yamini Aiyar and TR Raghunandan

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published Published on Feb 25, 2015   modified Modified on Feb 25, 2015
-Livemint.com

India's fiscal architecture is undergoing a radical overhaul this budget season. On Tuesday, the NDA government accepted the Finance Commission's proposal to enhance tax devolution to states. This, coupled with efforts to rationalize and reduce centrally sponsored schemes (CSS) through the chief ministers sub-group of the NITI Aayog, and the repeated calls for cooperative federalism together suggest that decentralization to states is the new mantra.

Missing from this rhetoric of decentralization and cooperative federalism is any debate on the future of the third tier of India's federal architecture-local governments. Indeed it's almost as though the government is seeking to rewrite India's federal story by limiting the focus to Centre-state relations. Yet, the twin combination of greater devolution of finances to states and the reduction of CSS afford a unique opportunity to re-script the role of local governments.

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Livemint.com, 25 February, 2015, http://www.livemint.com/Opinion/ZBFTYAfcLkzBeyvsK33YAJ/Whither-decentralization.html


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