ISO 9001:2015 Certified
closex Call Us 11-23320714, 23721504, ficci@ficci.com

 Upcoming Event
to forge a partnership on Technology Commercialization Initiative, FICCI-AMITY and IC2 Institute University

Need to revisit Constitutional provisions on federal structure: N K Singh 

Business Standard , Dec 11, 2020

Fifteenth Finance Commission (15th FC) Chairman N K Singh on Friday batted for revisiting provisions of the Constitution that govern the federal structure through consultative dialogue, amid souring Centre-state relations and the changing economic environment.

Singh also called for moving to a fiscal deficit range rather than a specific number to better judge expenditure outcomes of states.

At an annual general meeting of industry chamber FICCI, Singh suggested revisiting the provisions relating to subject areas between the Centre and states and centrally sponsored schemes (CSS). He also called for better coordination between the FC and the GST Council and the need for a body to coordinate between the Centre and states after abolition of the planning commission.

He said the country’s economic progress, global interdependence and the seamless integration through technology have reopened many of these settled contours for further deliberation.

“Are there new seeds of suspicion and mistrust? Are the existing arrangements governing Centre-state relations — legislative, executive and financial — envisaged in the Constitution adequate to meet the aspirations of Indian society?” Singh asked while delivering a lecture on Indian Economy and Reinforcing Federal Trust.

He suggested revisiting the VII schedule of the Constitution which divides the subjects broadly into Union, state and the Concurrent list.

“Over a period of time the division of functions got increasingly eroded,” the former bureaucrat said.

Singh suggested setting up a high-powered committee of domain experts to review this schedule.

There is also a need to revisit the entire area of Article 282 of the Constitution which deals with grants for public purpose.

The legitimacy of all CSS, which are in the domain of the states, emanates from the use or misuse of Article 282, he said.

Based on the internal exercise of the FC, there are approximately 211 schemes and sub-schemes under the 29 umbrella schemes. “Considering that states often protest that these schemes are ill-designed and not suited to their specific needs and entail significant financial outlays by them, no state has really decided to abandon them,” Singh pointed out.

Thus, the CSS should be flexible enough to allow states to adapt and innovate.

“We also need a far more credible policy for rationalisation of CSS and central outlays than have been possible so far. 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 CSS,” he said.

The fact that the total public outlay on these CSS is close to ~6-7 trillion a year cannot be overlooked, he said.

Singh focussed on the need for continuity in aligning the fiscal consolidation road map of the Centre and states in a more harmonious way.

“A differentiated debt path of states, which recognises the present constraints, and issues of legacy debt must be handled with sagacity and sensitivity. This is more required in times of adversities like the world is facing now due to the pandemic,” he said.

The Union government recently allowed additional 2 per cent borrowing for states in July this year based on universalisation of One Nation-One Ration Card, ease of doing business, power distribution and urban local body revenues.

Performance and outcome-based flexibility in states for undertaking market borrowing adds flexibility. A fiscal range than a fiscal point based on expenditure outcomes may be the need of the hour, he said.

He also emphasised on nurturing trust between not only the Union and states, but with the third tier of government — local governments.

 

 

Also Read

PM Narendra Modi to virtually inaugurate 'FICCI's 93rd AGM - Inspired India'

Need to constitute empowered group of domain experts for further rationalization of Centrally Sponsored Schemes: NK Singh, Chairman, Finance Commission

Govt working towards notifying the new PLI scheme by April 2021: Secretary DPIIT

India-US relationship to touch new heights in the days ahead under Biden-Harris administration: Ambassador Richard Rahul Verma

Indian Mythology offers important lessons on business management, corporate leadership

The 2020s belong to India: N Chandrasekaran, Chairman, Tata Group

Technology is the key to exploring new frontiers of economic recovery and resilience: Satya Nadella, CEO Microsoft

World's biggest problem is the world's biggest business opportunity: Dr Peter H. Diamandis

Trying to create the first genuine single window in terms of compliances and ease of approval process: Piyush Goyal

Our mission is to eradicate poverty: Nitin Gadkari

Recovery faster than expected; economic indicators encouraging; govt has road map for recovery: PM Narendra Modi

We are at the threshold of getting a coronavirus vaccine: Dr VK Paul

FICCI New Leadership - Uday Shankar takes over as FICCI President; Sanjiv Mehta elevated as Senior Vice President & Subhrakant Panda joins FICCI leadership as Vice President

Inspired India will emerge as a strong vibrant economy: Anand Sharma, Deputy Leader Opposition

Learn how to learn, and Lifelong learning are imperative for 21st-century education: Dr K Kasturirangan

Indian economy likely to return to pre-COVID level by end of current fiscal year: Rajnath Singh

PM to address FICCI AGM on Dec 12     

PM Modi to address FICCI's 93rd AGM, Annual Convention on Dec 12     

FICCI 93rd Annual General Meeting: PM Modi to inaugurate virtual Annual Expo tomorrow     

PM to address FICCI’s 93rd Annual General Meeting and Annual Convention on 12 December     

PM Narendra Modi to deliver inaugural address at FICCI's Annual Convention on Saturday     

PM to address FICCI's 93rd AGM, Annual Convention     

PM to address FICCI's 93rd AGM, Annual Convention on Dec 12     

PM to address FICCI event on Saturday     

PM to address FICCI's 93rd AGM, Annual Convention on Dec 12     

PM to address FICCI event on Saturday     

Need to revisit Seventh Schedule of Constitution: N K Singh     

Govt cautiously optimistic on economy; will continue to take steps to push growth: DEA Secretary     

Need to revisit Seventh Schedule, says 15th Finance Commission chairman NK Singh     

An 'ambitious' PSE policy on the anvil: Economic Affairs Secretary     

Need to revisit Seventh Schedule of Constitution: N K Singh     

Need to revisit seventh schedule of Constitution: N K Singh     

Government cautiously optimistic on economy; will continue to take steps to push growth: DEA secretary     

All higher education regulators including UGC, AICTE will be merged in 2021     

Govt cautiously optimistic on economy; will continue to push growth: DEA Secy     

'Tech-driven single window for clearances by April 2021'     

N.K. Singh calls for a fresh look at the Seventh Schedule     

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

PM Modi to address FICCI’s 93rd AGM, Annual Convention     

FICCI Annual Convention: PM Modi to address meet, inaugurate virtual FICCI Annual Expo 2020     

PM to address FICCI's 93rd Annual General Meeting and Annual Convention on December 12     

Centre to introduce single-window clearance for investors by mid-April: DPIIT Secretary     

Single window clearance for investments by April next year     

Need to revisit Seventh Schedule of Constitution: N K Singh     

Higher Education Commission to be set up next academic session: Secy     

Need empowered group of domain experts for further rationalization of CSS: NK Singh     

Need to revisit 7th Schedule, Article 282 of Constitution: NK Singh     

Centre committed to introducing single-window clearance for investors by mid-April, says official     

Need to revisit allocation of Powers between Centre and States: NK Singh     

Need to revisit seventh schedule of Constitution: N K Singh     

Need to revisit Seventh Schedule of Constitution: N K Singh     

Need to revisit seventh schedule of Constitution: N K Singh     

Need to revisit Seventh Schedule, says fifteenth Finance Commission chairman NK Singh     

Have to revisit seventh schedule of Structure: NK Singh     

Uday Shankar takes over as FICCI President     

Corporates entering banking is a good move, says FICCI President Uday Shankar     

Uday Shankar takes over as FICCI President     

Uday Shankar takes over as FICCI President     

Uday Shankar takes over as FICCI President     

Subhrakant Panda, new VP of FICCI     

Uday Shankar takes over as FICCI President     

Uday Shankar takes over as FICCI President     

Uday Shankar takes over as FICCI President     

Uday Shankar appointed as FICCI President for 2020-21     

Uday Shankar takes over As FICCI President     

Uday Shankar takes over as FICCI President     

Uday Shankar takes over as FICCI President; Sanjiv Mehta elevated as Senior Vice President & Subhrakant Panda joins FICCI leadership as Vice President     

Uday Shankar takes over as FICCI President     

Uday Shankar takes over as FICCI President     

Uday Shankar takes over as FICCI President     

Uday Shankar takes over as FICCI President     

Uday Shankar takes over as FICCI President     

Uday Shankar takes over as FICCI President     

Uday Shankar takes over as FICCI President     

Uday Shankar takes over as FICCI President     

Know who is Uday Shankar who will take over as President of FICCI     

Uday Shankar takes over as FICCI President     

Uday Shankar takes over as FICCI President     

Uday Shankar takes over as FICCI President     

Uday Shankar takes over as FICCI President     

India's day-to-day power demand 5-10 GW higher in Dec than last year: R K Singh     

Investment will not come in unviable power sector, says R K Singh     

Half-hearted reforms won’t help salvage discoms: RK Singh     

India aims to surpass China in mobile manufacturing: Ravi Shankar Prasad     

Investment will not come in unviable power sector: Power minister R K Singh     

Centre may extend PLI to laptop and tab manufacturing     

India aims to surpass China in mobile manufacturing: Ravi Shankar Prasad     

India aims to surpass China in mobile production, says Union Minister Ravi Shankar Prasad     

Pushing India to surpass China in mobile manufacturing, says Ravi Shankar Prasad     

'Surpassing China My Goal': Ravi Shankar Prasad On India's Mobile Manufacturing Revolution     

Indian forces faced Chinese military with utmost bravery: Rajnath Singh on Border Row     

'India can surpass China to become world’s largest mobile phone manufacturer'     

Subhrakant Panda- An Odia Industrialist Elected as Vice-President of FICCI     

Indian economy may return to pre-Covid levels by end of FY21: Rajnath Singh     

COVID vaccine: India Inc. proposes to use CSR funds for vaccinating staff     

Armed forces forced PLA to retreat: Rajnath     

PM Modi at FICCI AGM: Reforms in Mfg, MSME, Agri, Infra, Tech sectors show decisive govt     

Half-hearted reforms won't help salvage discoms: RK Singh     

Pushing India to surpass China in mobile manufacturing     

PLI Scheme to help India pip China in Mobile Manufacturing: Ravi Shankar Prasad     

Dixon calls for level playing field for new, old players under PLI schemes     

India on track to achieve Paris climate goals, says PM Modi     

Agricultural reforms will increase farmers' income: PM Modi at FICCI event     

PM Modi backs farm laws at FICCI event, says it will open up new markets     

Tech overhaul via public-private partnership will hasten recovery: Nadella     

'2020s belong to India': Tata Chairman Chandrasekaran at FICCI meeting     

PM Modi Highlights: Agri reforms aimed at benefiting farmers, private sector needs to step up, says Prime Minister     

Govt taking steps to make India competitive in global economy; focus on sunrise sectors must: Kant     

Private sector should ramp up investments in agriculture and allied industries: PM Modi     

Economic indicators are encouraging, situation improving swiftly: PM Modi     

Emergency use authorisation for Covid vaccine only after detailed analysis: Niti Member     

Farmers will get new markets, options and more benefits of technology: PM Modi on farm reforms     

Public institutions, pvt sector together can help developing economies overcome pandemic: Satya Nadella     

'World’s faith in India built over 6 years, strengthened in past months': PM Modi at FICCI's AGM     

Invest more in farm sector, not enough: PM tells India Inc     

India’s economic recovery faster than expected, says PM Modi     

Recovery faster than expected; economic indicators encouraging: PM Modi at FICCI event     

PM Modi to deliver inaugural address at FICCI's 93rd AGM today     

Jaishankar hopes India-US trade parleys continue under Biden     

Digital tech, AI transforming businesses in covid world: Satya Nadella     

Need to find swadeshi alternative of EV parts in India, says Gadkari     

Govt committed to helping farmers: PM Modi     

Technology key to exploring new frontiers of economic recovery, resilience: Satya Nadella     

Govt committed to helping farmers, increasing their income: PM Narendra Modi at FICCI convention     

Agri Reforms will create New Markets, Increase Income of Farmers, says Modi as Agitation Intensifies     

"Economic Indicators Raising Hope": PM On India's Recovery Amid Covid     

Recovery faster than expected; economic indicators encouraging: PM Modi     

Tech key to exploring new frontiers of economic recovery: Nadella     

'What happened in Ladakh, affected Public Sentiment in India:' S Jaishankar at FICCI 93rd AGM     

New farm laws will give farmers access to technology, says PM Modi     

Govt committed to protect interest of farmers: PM Modi     

Satya Nadella reveals why public sector is close to his heart     

There's bigger opportunity for Microsoft in 2020 than in 1970s, says CEO Satya Nadella     

Events at LAC pose ‘real danger’ of goodwill between India and China dissipating, says Jaishankar     

No pressure on drug regulator to approve Covid vaccines, says NITI Aayog member VK Paul     

India's patience being tested by China, says External Affairs Minister S Jaishankar     

Prime Minister Modi at FICCI AGM: Government committed to protecting interests of farmers     

Tech key to exploring new frontiers of economic recovery: Microsoft CEO Satya Nadella     

PM Modi at FICCI Highlights: Agri reforms are part of govt's efforts to remove hindrances, says PM     

Prime Minister says, speed of economic recovery is encouraging, govt. reforms are removing all kinds of needless frameworks     

Union Minister Piyush Goyal says new farm laws will bring more investment in rural India and raise farmers income     

Govt committed to protecting farmer interests 'At Any Cost': PM Modi     

Recovery faster than expected; economic indicators encouraging: PM     

Agri reforms will break barriers; farmers to benefit: PM Modi at FICCI meet     

Modernisation of public sector, public-private partnership: Satya Nadella on post-COVID recovery     

Farm Reforms To Provide New Markets To Farmers, Bring Investments In Agriculture: PM Modi     

PM Modi defends farm bills, says 'unless we invest big, farmers will not get better value'     

World's biggest problem is the world's biggest business opportunity: Dr Peter H. Diamandis     

India-US relationship to touch new heights in the days ahead under Biden-Harris administration: Ambassador Richard Rahul Verma     

Companies adopt tech at scale to transform business amid COVID-19: Satya Nadella, CEO, Microsoft     

PM Modi calls on industry leaders to invest in villages, small cities     

PM Narendra Modi at FICCI Convention: 'In 20-20 Match Things Change Rapidly, But 2020 Baffled Everyone'     

Technology key to exploring new frontiers of economic recovery, resilience: Satya Nadella     

Farmers will get new markets and more advantage of technology: PM Modi     

PM Modi said at FICCI conference, work is being done to make self-reliant India successful     

PM Addresses FICCI: From Farm Laws, Aatmanirbhar Bharat to Pandemic, Top Points From Modi’s Speech     

Tech key to exploring new frontiers of economic recovery: Nadella     

Technical key to explore new frontiers of economic recovery: Nadella     

Agri reforms to usher in new investments, farmers to gain: Modi     

Govt committed to protecting farmer interests at any cost: PM Modi     

Govt committed to helping farmers, increasing their income: PM Narendra Modi at FICCI convention     

Economic indicators are 'encouraging', we have road map for recovery: PM Modi     

Public institutions, pvt sector together can help developing economies overcome pandemic: Satya Nadella     

Tech key to exploring new frontiers of economic recovery: Nadella     

Tech key to exploring new frontiers of economic recovery: Nadella     

Tech key to exploring new frontiers of financial restoration: Nadella     

Companies adopt tech at scale to transform business amid COVID-19: Satya Nadella, CEO, Microsoft     

Public institutions, pvt sector together can help developing economies overcome pandemic: Satya Nadella     

Technology key to exploring new frontiers of economic recovery, resilience: Satya Nadella     

Companies adopt tech at scale to transform business amid COVID-19: Satya Nadella, CEO, Microsoft     

Tech key to exploring new frontiers of financial restoration: Nadella     

Public sector modernisation, public-private partnership with use of tech key for post-Covid recovery: Satya Nadella     

Tech key to exploring new frontiers of economic recovery: Nadella     

Tech Key To Exploring New Frontiers Of Economic Recovery: Nadella     

Satya Nadella Statement Economic Recovery New Frontiers     

PM Narendra Modi, to address the 93rd FICCI AGM, Annual Conference     

'India-US relationship to touch new heights in Biden-Harris administration'     

'India can become global leader in advanced manufacturing'     

FICCI Meeting: Satya Nadella bets big on AI and other digital tech     

Odisha to become world-class industrial destination: CM     

India may need 1.3 lakh-1.4 lakh Covid vaccination centres: Study     

Every village should have affordable data: Tata chairman     

Union Minister Piyush Goyal says new farm laws will bring more investment in rural India and raise farmers income     

Centre eyes increasing manufacturing share to 30% of GDP to make India Aatma Nirbhar: Gadkari     

3 indigenous players in clearance phase-2; Apollo 11 moment for India: Niti Aayog's VK Paul     

COVID-19 vaccine: 'Covaxin' is safe, developed on time-proven tech, says Bharat Biotech MD     

COVID-19 vaccination drive may start from Jan 2021, says Serum Institute’s Adar Poonawalla     

3 Indian vaccines in phase-2 has created Apollo 11 moment for India: Dr V K Paul     

Recovery faster than expected; economic indicators encouraging: PM Modi at FICCI event     

India hopes to have serious discussions on trade issues with Biden administration     

Tech key to exploring new frontiers of economic recovery: Satya Nadella     

Naveen Patnaik to speak on 'Aspiring Odisha for Inspired India' at FICCI’s 93rd Annual Convention on December 12     

Odisha CM Naveen Patanik to address FICCI’s 93rd Annual Convention on the topic 'Aspiring Odisha for Inspired India' on December 12     

Technology crucial for economic recovery in Covid era: Satya Nadella     

Our mission is to eradicate poverty, says Nitin Gadkari     

Event:

 FICCI's Annual Convention & 93rd Annual General Meeting - Inspired India