UPSC MainsPUBLIC-ADMINISTRATION-PAPER-II201320 Marks250 Words
Q12.

There is a tendency of centralism in Indian federalism, but it is not because of its institutional framework but because of its socialist goals and centrally devised plan development." Explain the statement in the context of Union-State relationship.

How to Approach

This question requires a nuanced understanding of Indian federalism and the historical context of its evolution. The approach should be to first acknowledge the centralizing tendencies, then dissect the argument that these stem from socialist goals and planning rather than the constitutional framework. The answer should explore the role of the Planning Commission, centrally sponsored schemes, and financial dependence of states. A balanced perspective acknowledging both constitutional provisions and practical realities is crucial. Structure: Introduction, Body (historical context, planning & centralisation, constitutional provisions & their limitations, current trends), Conclusion.

Model Answer

0 min read

Introduction

Indian federalism, though enshrined in the Constitution, has often been characterized by a degree of centralism. While the constitutional framework outlines a clear division of powers between the Union and the States, the actual practice has witnessed a significant tilt towards the Centre. The statement posits that this isn’t inherent to the institutional design of federalism itself, but rather a consequence of the nation’s adoption of socialist goals and the centrally planned development model pursued post-independence. This implies that the pursuit of equitable distribution and national objectives, through centralized mechanisms, inadvertently fostered a centralized Union-State relationship.

Historical Context & Early Centralization

Immediately after independence, the framers of the Constitution, while adopting a federal structure, were mindful of maintaining national unity and integrity. The experience of partition and the presence of princely states necessitated a strong Centre. Article 356 (President’s Rule) and Article 352 (National Emergency) provided constitutional tools for central intervention in states, initially used frequently. However, the real impetus for centralization came with the adoption of a planned economy.

The Role of Planning & Centrally Sponsored Schemes

The establishment of the Planning Commission in 1950 marked a decisive shift towards centralized planning. The Five-Year Plans, while aiming for socio-economic development, were formulated and largely controlled by the Centre. States were expected to implement these plans, leading to a dependence on central funding and directives.

  • Centrally Sponsored Schemes (CSS): These schemes, introduced in the 1970s and expanded over time, became a major instrument of central control. States relied heavily on central funds for these schemes, giving the Centre significant leverage.
  • Financial Dependence: The Centre controlled the majority of tax revenues, with states relying on tax devolution and grants-in-aid. This financial asymmetry further strengthened the Centre’s position.
  • National Development Council (NDC): Established in 1952, the NDC, headed by the Prime Minister, served as a platform for coordinating development efforts, but effectively centralized decision-making.

Constitutional Provisions & Their Limitations

While the Constitution provides for a federal structure with defined powers for both the Union and States, several factors limited its effective implementation.

Constitutional Provision Limitation/Centralizing Factor
List III (Concurrent List) Overlapping jurisdiction allowed the Centre to legislate on subjects also within state competence.
Article 356 (President’s Rule) Frequent use in the early decades demonstrated the Centre’s willingness to intervene in state affairs. (Used 94 times between 1950-1987)
Finance Commission While recommending tax devolution, the Centre retained significant discretion in accepting its recommendations.

The socialist goals, emphasizing equitable distribution and poverty alleviation, were often pursued through centrally directed programs, justifying increased central control. The rationale was that the Centre was better equipped to address national priorities and ensure uniform standards across the country.

Recent Trends & Shift Towards Cooperative Federalism

The dismantling of the Planning Commission in 2014 and its replacement with NITI Aayog signaled a shift towards a more cooperative federalism. NITI Aayog emphasizes bottom-up planning and greater state participation in policy formulation. The implementation of Goods and Services Tax (GST) in 2017, despite initial challenges, represents a significant step towards fiscal federalism. However, concerns regarding central control over GST revenue and the continued reliance of states on central funds persist.

Conclusion

The statement that centralism in Indian federalism stems more from socialist goals and centrally devised planning than the institutional framework holds considerable merit. While the Constitution provides for a federal structure, the pursuit of national objectives through centralized mechanisms, particularly during the era of planned development, undeniably strengthened the Centre’s position. Although recent trends indicate a move towards cooperative federalism, the legacy of central control and financial dependence continues to shape the Union-State relationship. A truly federal India requires a more equitable distribution of power and resources, fostering greater autonomy and self-reliance among the states.

Answer Length

This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.

Additional Resources

Key Definitions

Federalism
A system of government in which power is constitutionally divided between a central authority and constituent political units (states or provinces).
Centrally Sponsored Schemes (CSS)
Schemes funded by the central government but implemented by state governments, often with a sharing pattern of funds between the Centre and States.

Key Statistics

As of 2023-24, the share of states in the total tax revenue of the Union government is approximately 32% (as per revised devolution formula recommended by the 15th Finance Commission).

Source: Ministry of Finance, Government of India

In 2022-23, the total expenditure on Centrally Sponsored Schemes was approximately ₹4.88 lakh crore (as per the Revised Estimates).

Source: Ministry of Finance, Government of India (Knowledge cutoff: 2023)

Examples

MGNREGA

The Mahatma Gandhi National Rural Employment Guarantee Act (2005), while implemented by states, is centrally funded and governed by centrally defined guidelines, illustrating the Centre’s control over a key social welfare program.

Frequently Asked Questions

Is India a truly federal country?

India is often described as a ‘quasi-federal’ state due to the strong Centre and provisions allowing for central intervention in state affairs. While it possesses federal features, it leans towards a centralized model compared to countries like the USA or Canada.

Topics Covered

PolityEconomyFederalismEconomic PlanningConstitutional Law