Amid a tug of war between the Centre and a bunch of states over who should borrow to make good the GST shortfall, the government has tweaked its borrowing proposal. Rathin Roy, Managing Director at Overseas Development Institute, shared his thoughts on the recent developments, in an interview with CNBC-TV18.
He believes the Centre can demonstrate competence which is it is presently not doing or it can provide reassurance which it is not willing to. In such circumstances, relationships are going to be intricate and ultimately the Centre will have its way.
"I think and the states will be forced to borrow but that is extremely depressing prospects for inter-government fiscal relationship going forward," he said.
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