scorecardresearch
Friday, March 29, 2024
Support Our Journalism
HomeEconomyWithout planning commission, states & Centre need forum for policy dialogue —...

Without planning commission, states & Centre need forum for policy dialogue — N.K. Singh

N.K. Singh, chairman of the 15th Finance Commission, also advocated further rationalisation of centrally-sponsored schemes.

Follow Us :
Text Size:

New Delhi: After the abolition of the planning commission, there is a need for a consultative forum for credible policy dialogue between the central government and the states, N.K. Singh, chairman of the 15th Finance Commission, said Friday.

Delivering an address at industry body FICCI on the Indian economy and reinforcing federal trust, Singh flagged the need for such a body arguing that many economists and policymakers have argued about an ‘institutional vacuum’ after the abolition of the planning commission.

The Narendra Modi government abolished the planning commission in one of its first decisions after coming to power in 2014. The Niti Aayog has replaced the planning commission.

“While the NDC (National Development Council) is performing an important function, the states have pleaded for a credible institution acting as a link for a policy dialogue with the Centre… We need to give serious consideration for a consultative forum for credible policy dialogue between the Centre and the states,” Singh said.

“The NITI Aayog has emerged as a credible think-tank and their work in the sphere of Centre-state relations needs to be recognised. However, the States are keen to have a different kind of a policy-based consultative forum,” he added. “This is an area that deserves the serious consideration of policymakers.”

Besides the setting up of such a forum, Singh stressed the need for dialogue in five other areas to reinforce federal trust.

Dialogue in five areas

Singh advocated setting up a high-powered committee of domain experts for revisiting the  Schedule VII of the Constitution, which deals with division of subjects between the Union, state and concurrent list.

Pointing to changing technology, global interdependence and changes in national priorities, he called for revisiting the traditional classification of the subjects.

Singh also stressed on the need for further rationalisation of the centrally-sponsored schemes. He said that based on the estimation of the 15th Finance Commission, there are 211 schemes under the 29-umbrella core and core of the core schemes.

“We also need a far more credible policy for rationalisation of centrally-sponsored schemes and Central outlays than have been possible so far,” he said. “We need to constitute an empowered group of domain experts to submit to the finance minister and prime minister on modalities of further and deeper rationalisation of these centrally-sponsored schemes.”

He pointed out that total public outlays on these centrally sponsored schemes may be Rs 6-7 lakh crore per annum. “Are we persuaded that the outcome from this large public outlay both by the Centre and the states justifies this recurring expenditure?” he questioned.

Singh also said that fiscal range rather than a fiscal point based on expenditure outcomes may be the need of the hour for states battling the adversities from the pandemic.

He also pushed for a symmetry in the working of the GST Council and the Finance Commission. Singh concluded by saying that if fresh initiatives are taken on these suggestions, it could impart “new dynamism to fiscal federalism”.

“Federalism may be flexible, trust is not. It needs constant nurturing and rejuvenation,” he said.


Also read: NGT decisions causing losses to industry, need to look at its mandate — ministerial panel


 

Subscribe to our channels on YouTube, Telegram & WhatsApp

Support Our Journalism

India needs fair, non-hyphenated and questioning journalism, packed with on-ground reporting. ThePrint – with exceptional reporters, columnists and editors – is doing just that.

Sustaining this needs support from wonderful readers like you.

Whether you live in India or overseas, you can take a paid subscription by clicking here.

Support Our Journalism

3 COMMENTS

  1. All these erudite speeches and policy forums make little difference to the well being of the public and it’s future prospects. It’s mind boggling to hear that the central government “outlay” on so-called development schemes is 6-7 lakh crore rupees per year (notice the casual imprecision with the sums – 6-7 lakhs – as though it were small change, speaks volumes for the lackadaisical attitude of the bureaucrat). Goes to basically keep the vast and useless machinery of the government departments in comfort, to no benefit of the common people. Meanwhile these so-called ivory tower economics experts and bureaucrats live the good life, convening from time to time to make high-sounding speeches. Time the whole jolly lot was made to work in the streets or in the villages and do some real work such as cleaning the drains or building houses, schools or clinics. FOR the cost of employing one bureaucrat, we could have 5 real workers who make a difference such as doctors or policemen or teachers.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular