Centre for Economic and Social Studies (CESS) organized the third B.P.R. Vithal Memorial Lecture, an event dedicated to honoring the legacy of Sri B.P.R. Vithal Garu, Founder Member and the first Chairman of the CESS.
The session commenced with a warm welcome and inviting guests on to the dais by Dr. Alivelu Kasturi, Dean, DGS, CESS, followed by a solemn one-minute silence and floral tributes led by Sri K. Ramakrishna Rao, IAS, Special Chief Secretary (Finance & Planning), Government of Telangana, who also chaired the lecture.
Dr. Subbarao’s Keynote Address:
“Centre State Cooperation is vital for Viksit Bharat”
To achieve our national aspiration of Viksit Bhart by the centenary of Independence in 2047, we need much deeper and more mature centre state cooperation, according to Duvvuri Subbarao, former governor of the Reserve Bank of India.
The first generation reforms of the 1990s focussing on liberalizing investment, trade and finance could be implemented by the centre without consulting the states because they fell within the domain of the centre. The second generation reforms we now have to implement focussing mainly on factor markets – land, labour, taxation- require not just the consent but the active cooperation and involvement of states.
Subbarao noted that the fiscal centre of gravity is shifting towards states and our growth and stability require not just a strong centre but strong states as well.
Tracing the evolution of fiscal federalism since Independence, Subbarao lamented the shift from cooperative federalism when political leaders at the centre and in states subordinated their narrow interests to larger national objectives to the present day combative federalism with sharp polarization on political lines.
Delivering the 3rd BPR Vithal memorial Lecture at the Centre for Economic and Social Studies (CESS) in Hyderabad here today, Subbarao contested the stereotype view that the terms of our fiscal federalism are loaded against states. On the contrary, states in India enjoy much great spending power and larger autonomy on fiscal matters than their counterparts in other federal countries including the US, Canada and Brazil.
Nevertheless, there is need for the centre to be more conciliatory and consultative on centre state issues.
Presiding over the Lecture, K. Ramakrishna Rao, Special Chief Secretary (Finance) of Telangana said that the popular misconception about federalism in India has been dispelled by Dr.Subba Rao persuasively arguing that states should perceive issues from a national perspective and Centre should give flexibility to the states in understanding development expenditure.
BPR Vithal (1927-2020) served in the IAS in the combined state of Andhra Pradesh and distinguished himself as a long standing finance secretary of the state. He was a member of the Tenth Finance Commission and was considered one of the foremost experts on fiscal federalism.
Welcoming the gathering, Prof E. Revathi, Director of CESS said that CESS fraternity would remember Sri BPR Vithal with reverence for his contribution to setting and building the Centre as an autonomous research institute – as a think tank to the state, funded by the Government as well as making it known widely.
The event concluded with an engaging Q&A session and concluding remarks by Sri K. Ramakrishna Rao, further enriching the discussion. Prof. E. Revathi delivered the vote of thanks, expressing gratitude to the esteemed speaker, dignitaries, and attendees for making the event a success.