The Talk
Where you stand depends on where you sit. Centre and the States often have contrasting perspectives on their relations. Often the States have conflicting interests among themselves, in dealing with the Centre. World Bank deals with the Centre and the States through the Centre. Reserve Bank is accountable to the Centre but is banker, debt manager, and fiscal adviser to the States also. Symmetrical treatment of the Centre and equitable dispensation to all the States is mandatory for the Finance Commission. Centre-State relations depend on interplay of ideology, institutions, interests and individuals
Dr Y.V. Reddy, former Governor, Reserve Bank of India, draws on his experiences with these perspectives, to illustrate the colours, tastes and flavours of Union-State relations.