A new paper by RBI economists highlights the importance of states devising and deploying their own policies in times of crisis when mobility is affected.
The Narendra Modi government is looking at ways to check states’ spending on handouts like free electricity and rations. The first step is to tighten the noose on state borrowings.
Food prices, reopening of economy & resurgent demand are fuelling inflation, but robust public distribution system is likely helping some states like Kerala, Tamil Nadu keep prices down.
Displeasure over the practice was expressed during a presentation made by Finance Secretary T.V. Somanathan at national conclave of chief secretaries in Dharamshala last month.
The study by researchers at Indira Gandhi Institute of Development Research looked at economic impact of reorganising Uttar Pradesh, Madhya Pradesh, and Bihar in the year 2000.
If we compare Indian states to India’s neighbourhood, we find that only Goa, Sikkim, and NCT of Delhi have a GDP per capita higher than China’s GDP per capita of $16,772.
West Bengal and Rajasthan have remarkably improved the delivery of basic services to their poorest 20% population between 2005-06 and 2015-16, NFHS data show.
With his latest address to the nation, Narendra Modi once again projected himself as the messiah who swooped in to save Indians when state governments had seemingly failed.
The last time this matter flared up was when Delhi Chief Minister Rekha Gupta, in a very similar directive in April, called for the relocation of stray dogs in the capital.
Finance ministry says the proposed revamp will focus on structural reforms, rate rationalisation & ease of living, & will be deliberated upon in the coming weeks.
The project is meant to be a ‘protective shield that will keep expanding’, the PM said. It is on the lines of the ‘Golden Dome’ announced by Trump, it is learnt.
Now that both IAF and PAF have made formal claims of having shot down the other’s aircraft in the 87-hour war in May, we can ask a larger question: do such numbers really matter?
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