Narendra Modi on Friday stressed that the Centre must play the team leader’s role and willingly co-opt state governments into the decision-making apparatus. He also said the Indian Railways and PSUs like * Coal India would need to be professionalised. When pressed for an answer on whether he would allow privatisation, Modi said: “Even that decision should be based on professional advice, not political.” In other words, privatisation is a possible option under a Modi government, not a likely one.
Outlining his vision for governance and federalism, the BJP’s prime ministerial candidate told CNBC Awaaz that states require greater freedom in deciding how to spend central funds. “If, for instance, a state has done well in the area of rural roads, the Centre would now cut back its allocations under the Pradhan Mantri Gram Sadak Yojana; instead, it should maintain the outlay and allow the state to use the money in other areas of the latter’s choice, like water supply,” he said in response to a question on whether a Modi prime ministership would mean more funds for states.
“One has to be sensitive to regional aspirations. The Centre has not been able to grasp the problems of the states,” Modi said. “There is a lack of communication between the Centre and states... I will order and you follow; you ask and I will give (which seems to be the Centre’s approach) needs to change,” he said.
Modi’s ardent advocacy of decentralisation comes on the heels of the UPA government’s interim Budget effecting a big hike in the transfer of Plan funds to state treasuries: 61% of all Plan funds in FY15 will be routed through state budgets in FY15 from 25% in FY14, though states still have limited flexibility to divert funds to purposes other than the designated schemes.
Making it clear that the BJP was all for the goods and services tax, Modi said the main hitch in implementing it was that the requisite information technology platform was not ready. And the states’ concerns (over any loss of revenue in the GST regime) would have to addressed, he said.
The UPA government, it may be noted, has been critical of the BJP’s alleged ambivalence towards the GST, which experts say is a better indirect taxation system, primarily for its ability to avoid cascading of taxes in B2B transactions.
“The Centre needs to treat states as equal stakeholders regarding the