Budget 2022: Cooperative Federalism
When India became an independent nation, our policymakers of the time chose a federal system of governance keeping in mind the vast diversity in the country. They wanted a united nation that respects the individuality of different communities, largely divided through state borders. Federalism is, thus, in the very fundamentals of our country’s formation.
Reflecting the true spirit of cooperative federalism, the central government showed commitment towards bolstering the hands of the states in enhancing their capital investment that creates productive assets and generates remunerative employment. The scheme for financial assistance to states for capital investment has been extremely well received by the states, as announced the FM in her speech. Following up on the requests received during the hon’ble finance minister’s meeting with chief ministers and state finance ministers, the outlay for this scheme is being enhanced from Rs. 10,000 crores in the budget estimates to Rs. 15,000 crores in the revised estimates for the current year.
Further, Rs. 1 lakh crore is being provided to assist the states in catalysing the overall investment in the economy. These 50 years interest-free loans are over and above the normal borrowings to the states. These provisions by the center are a push towards inclusive governance and consistent development across states marked by differences in economic and social conditions.