Two years have passed since the erstwhile powerful “cabinet-like” Planning Commission was replaced with NITI Aayog (“Step up spending on infra, PM tells States”, April 24). Though a comparison between the two bodies at this stage is not justified, nevertheless an assessment of NITI Aayog is called for. With the Finance Commission reclaiming its position as the nodal agency for vertical and horizontal allocation of resources to States and the Finance Ministry asserting its command over the federal economy, the role of NITI Aayog has been confined to advising and pushing innovation in governance. At the political level, it has served as a platform for effective Centre-State coordination. On the flip side, NITI Aayog’s mandarins are silent on dealing with issues such as unemployment and poverty. Ascendancy of growth on the back of consumption expenditure without greasing the investment cycle will spell only short-term respite.
Bibhuti Das,
New Delhi
The road to rapid growth and development is through boosting investment in the country’s infrastructure which provides an enabling environment for economic activities. However there is stark disparity among States in both spending and availability of state-of-the-art infrastructure. Bihar, U.P., Odisha and Jharkhand have a poor road network, bad digital connectivity and electricity generation. The most dismal situation exists in the Northeast, where there is an abundance of possibilities. A recent CAG report reveals that the Centre owes crores of rupees to various States. After the rollout of GST, disbursement of funds to States should be pursued.
Gagan Pratap Singh,
Noida, Uttar Pradesh
Mr. Modi’s suggestion to shift the financial year to January may not serve any purpose. What positive impact will it have on growth? Such a move will only lead to inconveniencing auditors, accountants and people at large. His advice to States to step up spending on infrastructure must also factor in how cost escalation of projects is too high because of poor infrastructure management systems. Governments must have a vision.
S. Ramakrishnasayee,
Ranipet, Tamil Nadu
