April 10, 2017

Will the GST Increase Political Fragmentation?

Vivek Dehejia, Sr. Fellow at IDFC Institute, wonders if the GST rollout has the potential to exacerbate the growing economic divergence in the country in this Mint article. He writes: 

 

"[...]the putative increase in economic integration in tandem with a reduction in fiscal tools available to the states, simultaneously wrought by GST, might exacerbate, rather than attenuate, interstate differences in income and well-being per person[...] All this suggests that we may expect increased political fragmentation in the years to come, and that this fragmentation will be organically tied to the same underlying forces driving economic divergence in the midst of a push toward greater policy centralization emanating from the Union government—it should be noted, irrespective of which major party is in power."

 

Read the full article here.

Topic : Transitions / In : OP-EDS
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