Beware the nudge effect in federalism
- The Centre wants a larger share of taxes from the divisible pool. The Finance Commission should resist this
- The Centre is well within its right to create funds for defence from its own consolidated fund and does not require endorsement by the commission
Cooperative federalism is a convenient advocacy tool when one wants to centralize decision-making. Even as the Union government has been asserting its commitment to the values of cooperative federalism, it has not hesitated to encroach on state subjects through centrally sponsored schemes (CSS). Nor has it been at peace with the Fourteenth Finance Commission’s recommendations increasing the states’ share in the devolution of taxes.
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