Devolution of funds to states should decrease
State bureaucrats and politicians are narrower, more parochial and myopic in their vision when compared to those at the centre
One of the striking changes in the terms of reference for the 15th Finance Commission (FC) is that population is to be taken according to the 2011 rather than the 1971 census. The latter has been the basis of the last 10 FCs, and had the support of the national development council. The arguments in its favour are well known. But I have always held, and continue to hold, that if population is to be the basis for working out the fiscal need of the states, then it is a no-brainer that current population is the best basis for it.