The PM Walks The Talk, States Get Windfall

Of course in the states ruled by the vote bank managers, it will only mean more freebies and illegal benefits for the vote banks. But in the states ruled by good Chief Ministers, this will bring all the benefits that decentralisation brings. When more people are left alone to make decisions concerning them, chances of more decisions turning out good increase manyfold.

Of course the Central government should aim to achieve the following:

Centre should only fund

1. The entire security apparatus- Military, Central Reserve Forces and paramilitary forces, and, the police and paramilitary forces in the state (their control to be with the states as at present.)

2. Justice delivery system, i.e., all Courts, from the Supreme Court to the lowest courts in the district.

3. National Highways, and mega irrigation projects.

4. Some key educational institutions like IITs, IIMs, and AIIMS.

5. Space exploration and defence research, and other research institutes currently under Centre.

All other centrally funded schemes and programmes should be discontinued and balance funds all should be devolved to the states. All departments that do not handle above should be abolished at the Centre. This will dramatically improve the financial health of the Central government, and will automatically choke freebie programmes.

"NEW DELHI: Government has accepted the Finance Commission's recommendations for a substantial hike in share of states in central taxes and asked them to tailor make schemes as per their needs, Prime Minister Narendra Modi said.

The Finance Commission had suggested raising share of states in central taxes to 42 per cent from current 32 per cent. As per the increased devolution suggested in the report of the 14th Finance Commission, the states will get Rs 3.48 lakh crore in 2014-15 and  .. ) ( from the news item.)

Read the whole report here.