Subject: Governance

The ongoing debate on administrative reorganization gained prominence with the creation of Telangana in 2014, raising questions about the correlation between state size and governance effectiveness. The creation of smaller states like Uttarakhand, Jharkhand, and Chhattisgarh in 2000 provides empirical evidence to analyze this proposition.

Arguments in Favor of Smaller States

• Administrative Efficiency: Smaller geographical areas enable better monitoring and implementation of welfare schemes (e.g., Uttarakhand's success in implementing MGNREGA with 85% completion rate).

• Resource Allocation: Focused development of regional resources and customized policies for local needs (e.g., Chhattisgarh's PDS reforms reaching 86% of targeted beneficiaries).

• Citizen Participation: Enhanced accessibility to government machinery and better grievance redressal mechanisms (as seen in Vietnam's PAPI survey 2024 showing increased citizen satisfaction with e-governance).

Challenges with Smaller States

• Economic Viability: Limited revenue generation capacity and higher per capita administrative costs (e.g., state expenditure per capita of $11,087 in 2021).

• Infrastructure Development: Duplication of administrative infrastructure and increased establishment costs.

• Inter-State Coordination: Complexity in managing shared resources and implementing cross-border projects.

Way Forward for Effective Governance

• Technology Integration: Leveraging e-governance solutions for improved service delivery regardless of state size.

• Fiscal Federalism: Ensuring equitable resource distribution through constitutional mechanisms like the Finance Commission.

• Capacity Building: Strengthening local governance institutions through training and empowerment of officials.

The effectiveness of governance depends not merely on the size of administrative units but on various factors including administrative efficiency, resource utilization, and citizen participation. As demonstrated by successful models like Kerala and Gujarat, good governance can be achieved through robust institutions and effective policies, regardless of state size. The focus should be on strengthening existing administrative mechanisms while ensuring balanced regional development through cooperative federalism.