Re: state/center division of powers, was:Shut down Excise

[prabhu.guptara@ny.ubs.com]

     The division of tasks/responsibilities/powers between Centre and
     States is already clearly specified in the Indian Constitution.

     If you wish to change this, please start with an understanding of the
     status quo and of a list of reasons why it makes sense to change.

     Taxation systems are a different matter.  I have no strong feelings
     either way on the balance of taxation between local entities and the
     centre.  But let those who argue for greater decentralisation of the
     tax structure be aware that:

     1.  they will thereby be weakening an already weakened centre, and
     2.  they will exacerbate existing income differentials between
     regions/ localities (and that this will lead to greater desire for
     some regions (very rich and very poor) to separate from India).

     However, some of this weakening of the centre may be good for the
     country; I am open to being persuaded either way....


     Professor Prabhu Guptara
     Director, Organisational and Executive Development
     Wolfsberg Executive Development Centre
     (a subsidiary of UBS AG)
     CH-8272 Ermatingen
     Switzerland
     Tel: + 41.71.663.5605
     Fax: +41.71.663.5590
     e-mail: prabhu.guptara@ubs.com





______________________________ Reply Separator _________________________________
Subject: Re: state/center division of powers, was:Shut down Excise
Author:  charu (charu@ix.netcom.com) at nyuxuu
Date:    09.11.98 21:40


Manoj Padki wrote:

> . . .  Let us
> scrap the current system of sending all money to Delhi & they sending it
> back in a political & arbitrary fashion. Let us keep as much money local as
> possible, and send money to Delhi only for national tasks. Water, garbage,
> sewage are local tasks & we need to provide them with local money.
>

I agree with this point of view.

This raises the question of division of state and central
powers/responsibilities. Does anyone have a suggested starting criteria
for how to divide tasks between state and center- and consequently how
tax revenue is to be shared between states and center?

-Charu



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