Centre-State relations

We will place Centre-State relations on an even keel through the process of consultation and strive for harmonious Centre-State relations

Fiscal federalism relations and their impact on the Centre-State fiscal relations

NOV 3, 2017|Jagran Josh|Full Article

Over the last few years, especially since Narendra Modi-led Government came to power at the Centre in May 2014, one can observe a remarkable shift in the federal relations between the Centre and States.

1. Goods and Services Tax
The Goods and Services Tax or GST was rolled out across the country on 1 July 2017. The GST subsumes majority of the indirect taxes – excise, service, sales tax, octroi, etc – to create ‘One Nation, One Market’.

2. NITI Aayog
On 1 January 2015, NITI Aayog was set up as a think tank for providing policy inputs to the government on the developmental matters. Unlike its predecessor Planning Commission, the NITI Aayog was built on the spirit of ‘Team India’ by accommodating States; It is evident from the fact that its governing council consists of Chief Ministers of all States.

3. Role of State Governments in improving ‘external relations’
Over the last few years, the Centre has been encouraging the States to advance bilateral relations. For instance, during the visit of Modi to China in May 2015, Indian States and Chinese Provinces agreed to establish a State/Provincial Leaders’ Forum. Similarly, many of the Indian cities like – Varanasi, Hyderabad, Banglore, etc signed sister city partnership agreements with major cities of the developed countries.

Strengthen the Framework