While the states are guaranteed of their GST revenue (14% growth!!!) they are losing big time on all others of their revenue sources like liquor and petroleum.
Also there will be a downstream impact of shrinking of Union's divisible pool from which states get 41%.
Public finances, for both the State Govts and the Union Govt are going to be wrecked.
Both must use this opportunity for a purge and reset of the Governance Model to cut down on the bloated bureaucracy and regulatory cholesterol.
The number of ministries and Deptts must be cut down to less than half.
Why did BJP give up on the CM position in Maharashtra?
Here is what I think:
While the Shinde faction has got control of the legislative party, the political Party that is Shiv Sena is still in control of the Uddhav faction.
By making Shinde the CM, BJP has paved the way for Shinde to bid for total control of the Sena, including the party symbol.
Given the numbers, BJP will still be in control of the Govt and will be able to push through its development agenda, including the flagship Infrastructure projects that Fadavis started and which were stalled by Uddhav,
In the times of the food scarcity of 1960, the monoculture of wheat and paddy made sense.
Today, the MSP system has led to a situation where wheat and paddy is being grown to rot, not only at great cost to us taxpayers, but also to our environment and to farmers.
Left to market forces, there is a natural feedback; if consumer demand for millet grows, the prices increase, sending a feedback to grow more of it in the next cycle, a glut in a commodity will send the price crashing and will be grown less in the next cycle.
Over a period of time, the market will ensure that the producers are producing as per the consumer demand.
The MSP systems cuts-off this feedback and has converted Punjab into a monoculture and a cancer belt.
If farmers must be respected, because they put food in the plate then why not the construction worker, who built the home that you live in?
Let's demand State subsidies and freebies for construction workers, paid by us taxpayers, just like we do for the farmers.
Farmers are like any other producers and businessmen, they must be respected just like any other producer.
Today, Dubai gets much better food in its plates than Bathinda, even as UAE has no farmers.
Building food supply chain is most critical.
Today, farmers in India are not producing what the market (that is we the consumers) needs, but they produce wheat, rice and sugarcane, far more than what we need and it ends up rotting in the FCI godowns.