Nearly two years ago, INCLUSION ran a special edition featuring 'State of Governance' in which some well-known authors analysed the reasons behind some of the vexed issues confronting India like the dispartiies in development performance among states, shrivelled grassroots governance, barriers to social mobility and the frailties in the justice system. The series of articles underlined a fact that has not diminished in value-the acute need to "develop a credible framework for assessing quality of governance in various states that could possibly provide an agenda for governance reforms," as our Editorial put it.
The government has accepted the recommendations of the 14th Finance Commission that seeks to enhance transfer of money to the states from the central taxes by an unprecedented 10 per cent.
Under the new arrangement 42 per cent money from the 'divisible pool' will be transferred to the states. This is 10 percentage point increase when compared with the previous 32 per cent.