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Centralising effect of government and demonetisation
The centrally sponsored schemes are implemented by the State governments which emerge as the primary face of the scheme facilitator. Thus, the credit for the success of a central scheme is claimed by the state government. Since the Modi government came to rein the Centre, the projection of importance of Prime Minister and its authority across areas of government activity has been rebranded to better enable the Centre to claim credit for its scheme and limit the power of states to do so. Whether it is MGNREGA or NRHM or NFSA, the common people think it is the state government that is working for its welfare. The state governments also play politics by claiming credit for a central government policy sponsored by the Centre. The demonetization has affected every section of society. The state governments don t seem to have been consulted and are as affected as the common people bemoaning its inability to address the problems faced by people of their states in paying for medical treatment in private hospitals, for farmers in making repayments at, or accessing loans from, cooperative banks. Even the design of the new notes with national symbols like Devanagari numerals and a logo of Central government s scheme Swachh Bharat have challenged regional sensibilities. This is probably the right time to engage in a deeper debate on cooperative federalism and Centre-State relations.

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