Modi 3.0: The return of the coalition. And maybe the Planning Commission?

livemint.com:

National Democratic Alliance (NDA) partners from various states will follow suit, including those where the BJP has gained power for the first time, such as Odisha. Regardless of who raises these demands, it is clear that central-state financial relations may need to be redrawn. This is not entirely surprising, given the ongoing tussles over these issues.

Tamil Nadu has led the campaign for the concerns of southern states for over a year now, and more states are expected to join in. The difference now is that the BJP lacks the political mandate to push back. Consequently, the central government may have no option but to listen to the states on these matters carefully.

However, it lacks the institutional framework to conduct constructive dialogue with them. Prime Minister Narendra Modi’s Union Cabinet scrapped the Planning Commission, established by Jawaharlal Nehru, replacing it with the Niti Aayog, which functions as a think tank. States have reasons to be dissatisfied with the Finance Commission, as the Centre has been subverting tax-devolution awards by collecting more taxes through cesses and surcharges, revenues from which it is not obliged to devolve to them.

The Inter-State Council, which did good work earlier, has languished under Modi’s first two terms. Currently, the only operational interface between the central and state treasuries is the finance ministry. It is not surprising, therefore, that both Andhra Pradesh chief minister-designate N.