New Delhi: Mr NK Singh, Chairman, Finance Commission, Govt of India today said that there is a need to have a far more credible policy for rationalization of both centrally sponsored schemes and central outlays.
Addressing the Curtain Raiser session ‘Inspired India’ at FICCI’s 93rd Annual General Meeting, Mr Singh said, “We need to constitute an empowered group of domain experts to submit recommendations to the Finance Minister and the Prime Minister on modalities for further and deeper rationalization of Centrally Sponsored Schemes.”
He further stated that the nation’s economic progress, global interdependence and seamless integration through technology have legitimately reopened many of the settled contours for further deliberation.
Elaborating on the adequacy of the existing arrangements on center-state relations, Mr Singh said that with the society changing rapidly, as it becomes domestically and internationally more integrated, revisiting the contours of the basic architecture of a consultative dialogue becomes important.
“After all, we cannot overlook the fact that the total public outlay on the centrally sponsored schemes are close to INR 6-7 lakh crores of which about INR 3.5 lakh crores comes from the central government alone- a much deeper rationalization and synergy in these would be necessary,” he added.
Mr Singh also said we need to have flexible performance-based outcomes while determining debt outcomes. “We have an important role in reinforcing federal trust. We must be mindful of the need to nurture the trust, not only between the union and the state but also with the third tier of the government, namely the local government,” he further added.
Addressing the curtain-raiser, Dr Sangita Reddy, President, FICCI said, “The secret of change is to focus all your energy not on fighting the old but on building the new. The theme of our annual Convention is Inspired India- this inspiration is from our inherent strengths and vibrancy of the industry.”
Dr Reddy said that FICCI’s annual convention is one where the government and industry come together to cross-fertilize ideas to help the nation reach the $5 trillion economy mark.
Further, Dr Reddy said that post-COVID-19, there was an urgent need to reimagine, reinvent, and reboot the economy. “The Government of India’s timely decisions and very important measures in all spheres have not only helped ensure the safety and well-being of the citizens but has also helped economic activities to resume,” added Dr Reddy.