April 21, 2022
India is a Union of states. It is not a confederation of states. It is not a question of holding together but of coming together. The Union is indestructible. The configuration of the states which constitute the Union can change. The Union, therefore, is integral to both the Centre and the states. The strength of the Centre lies in the strength of the states. Therefore, the macroeconomic stability of the Union is contingent on the macroeconomic stability of both the Centre and states. That is why in grappling with the complex issues of the Fifteenth Finance Commission, of which I was the chairman, we devoted the entire Volume-IV to the states. Each state in this volume of the report has been analysed at great length. So have their individual deficits, debts and macroeconomic stability, which includes the developmental challenges each of the states face.... Read More