Data and Federalism, Pg 8

Key Highlights

Launch of NITI-NCAER State Portal

• Aggregates data on tax revenue, literacy, employment, health, etc., for better policy analysis.

• Provides a structured lens to assess disparities across states.

Importance of Data-Driven Federalism

• Portal aids fiscal transparency and improves trust between Union and States.

• Helps navigate contentious issues like revenue-sharing or parliamentary delimitation.

Challenges

• Still depends on existing imperfect datasets.

• Risk of over-centralization and parochialism without institutional engagement.

Way Forward

• Encourage state participation, especially via platforms like the 16th Finance Commission.

• Need to foster cooperative federalism rooted in evidence and trust.

Mains Mock Question:

_Reliable data is the foundation of a transparent and equitable federal system. Discuss the role of digital platforms in strengthening India’s fiscal federalism._