Towards a New Federal Architecture: Issues and Challenges

Abstract

Though India is wedded to a federal structure, its underbelly is often tormented by centre state discords. The bonanza from the 14^th Finance Commission (FC), dismantling of the Yojana Bhawan by a Niti Aayog and the likelihood of Goods and Services Tax (GST) passing legislative muster have germinated hopes for a cooperative federalism. The paper brings out the innards of dichotomy that are on display in Human Development Index (HDI) and Gross Domestic Product (GDP) growth, multidimensional deprivations in the rural hinter land and heartless reduction in allocation to critical social sector programs like Integrated Child Development Scheme (ICDS). While the paper highlights the likely benefits that will flow out of GST legislation, it argues for the bolstering our regulatory mechanism, fostering transparent competition and ensuring accountability of all stakeholders so that unregulated free market promote crony capitalism.

Keywords: FC, GST, GDP, HDI, ICDS, NITI AAYOG