If the market functions properly it can improve efficiency, but there is no reason to assume that it will deliver equity. This is why both the state and the market are needed. They are complementary – not substitutes for one another. The state cannot ensure a decent life for its citizens without a market.
6. Over the past decades, the actual working of these constitutional provisions have generated considerable debate. Successive Finance Commissions have made efforts to address the emerging issues and challenges, but in a vibrant democracy like India the debate goes on. Geopolitical risks have necessitated higher expenditure on defence and internal security. Natural calamities and disasters have called for higher expenditure on relief and rehabilitation.