Hyderabad: Former RBI governor D Subbarao on Thursday cautioned against a few southern states’ proposal to increase their population to rectify disparities in central funding, pointing out that it was not a viable solution.
During the 3rd BPR Vithal Memorial Lecture on ‘India’s Fiscal Federalism – Quo Vadis?’ held in the city, Subbarao said, “States excelling in population control are at a disadvantage regarding central funding. But I maintain that increasing the population is not the answer as India is one country. We will end up having an aggregate population challenge.”
Reflecting on his extensive experience in govt service spanning five decades, he recalled that when he began his career, the primary focus was on population control and family planning as it was widely believed that population growth hindered development.
“I never anticipated a time when political leaders would advocate an increase in population,” he remarked.
Recently, Andhra Pradesh chief minister N Chandrababu Naidu and Tamil Nadu CM MK Stalin had expressed concerns about being penalised for their states’ successful population control measures, suggesting this had resulted in reduced central transfers.
Reflecting on freebies offered by parties, the former RBI governor suggested that the central government should implement a mechanism to regulate it to prevent excesses. He expressed disappointment that despite Prime Minister Narendra Modi’s earlier call for restraint on doles, the BJP itself went on a freebies spree during the Uttar Pradesh elections. Now, they are competing with the Aam Aadmi Party on freebies, he said.
He, however, acknowledged the necessity for govt assistance in a country where millions struggle to meet their daily needs.
Regarding certain states providing free bus rides for women, Subbarao said there was no conclusive evidence that this was the best way to help.
He asserted that govts cannot borrow and give away money for consumption as freebies.
Subbarao also stressed on greater collaboration between Centre and state govts for India to achieve the goal of ‘Viksit Bharat’ by the centenary of country’s Independence in 2047.
