Governance pays off for states

There was surprising unanimity and some squabbling among different states at the India Today State of the States Conclave 2007 on September 14. Reducing unemployment, developing skills and improving the state of the farm sector were the factors that united the representatives of more than 15 states. The heartburn was caused by tax concessions in select states.

Punjab Chief Minister Prakash Singh Badal was the first to put the cat among the pigeons with a mention of concessions to neighbouring states. But Badal’s state still came out tops in three categories.

Another remarkable achiever amongst the small states was Puducherry, which, too, bagged three top slots. The government of Madhya Pradesh, meanwhile, seems to have delivered on its electoral promises, even as the Narendra Modi magic has worked in Gujarat.

This just proves the point that Finance Minister P. Chidambaram made in his inaugural speech about good governance being key to allround inclusive growth. “Never before has so much money devolved to the states,” he said, pointing to their improved finances. Not all agreed.

The rich and vigorous debate probably defines “Indian federalism at its best”, keynote speaker, Vice President M. Hamid Ansari, pointed out.