The shift in the balance of power between the Centre and the states has huge implications for infrastructure creation. Before the Goods and Services Tax (GST), the federal structure was not merely political, but also had fiscal and financial dimensions. Now with sales tax and octroi gone, the states find themselves in many ways fiscally impotent.
At the same time, the federal political structure is such that a chief minister cannot disown responsibility for the economy because of the lack of revenue certainty. The chief minister is there to deliver growth, prosperity, increase in real wages and generally meet the. . .
