Model Answer
0 min readIntroduction
The Indian Constitution establishes a federal structure with a clear division of powers between the Centre and the States. However, this federalism is often described as ‘cooperative’ and ‘asymmetrical’, reflecting the Centre’s historically dominant position. The Second Administrative Reforms Commission (2007) rightly pointed out that Centre-State relations have undergone significant changes, particularly with the rise of regional parties and instances of different political formations ruling at the Centre and in the States. This divergence has introduced new complexities, impacting policy implementation, resource allocation, and the overall governance framework. The increasing instances of political bargaining and competitive federalism necessitate a re-evaluation of the existing dynamics.
Historical Context of Centre-State Relations
Initially, the Centre enjoyed considerable power, stemming from factors like financial dependence of states and the dominance of a single party system (Congress) for the first three decades after independence. Article 356 (President’s Rule) was frequently invoked, demonstrating the Centre’s power to intervene in state affairs. However, the rise of regional parties and coalition governments at the Centre gradually altered this dynamic.
New Dimensions in Centre-State Relations
Political Divergence
The most prominent new dimension is the increasing frequency of different political parties being in power at the Centre and in States. This leads to:
- Increased Political Bargaining: States leverage their political influence to negotiate for greater financial assistance, policy concessions, and autonomy.
- Policy Disagreements: Divergent ideologies often result in disagreements on crucial policy matters like agricultural reforms (Farm Laws 2020), environmental regulations, and labour laws.
- Competitive Federalism: States actively compete with each other to attract investment and implement development projects, sometimes leading to a race to the bottom in terms of labour standards or environmental protection.
Financial Considerations
The Goods and Services Tax (GST) regime, while intended to streamline indirect taxation, has created new friction points. States often express concerns about revenue losses and the Centre’s control over GST Council decisions. The 15th Finance Commission (2020-2026) recommendations regarding the share of states in the divisible pool of taxes also sparked debate.
Administrative Challenges
The implementation of centrally sponsored schemes (CSS) often faces challenges due to differing priorities and administrative capacities of states. States may resist schemes they perceive as infringing upon their autonomy or not aligned with their development goals. The Aadhar-linked direct benefit transfer (DBT) scheme faced resistance from some states due to privacy concerns.
Judicial Intervention
The Supreme Court has played a crucial role in mediating Centre-State disputes and upholding the principles of federalism. Recent cases concerning the powers of Governors and the interpretation of constitutional provisions demonstrate the judiciary’s active involvement in safeguarding the federal structure.
Examples of Recent Developments
- West Bengal and the Centre (2019-Present): Frequent clashes over issues like the implementation of central schemes, CBI investigations, and political violence.
- Kerala vs. Centre on CAA & NPR (2020): The state government challenged the Citizenship Amendment Act (CAA) and the National Population Register (NPR) in the Supreme Court, highlighting ideological differences.
- Tamil Nadu’s Opposition to NEET (2021-Present): The state government’s continued opposition to the National Eligibility cum Entrance Test (NEET) for medical admissions, citing concerns about social justice.
| Issue | Centre’s Position | State’s Position |
|---|---|---|
| Farm Laws 2020 | Agricultural reforms to increase farmer income | Concerns about corporate exploitation and loss of MSP |
| GST Compensation | Centre committed to compensating states for revenue losses | States demanded extension of compensation period |
Conclusion
The observation of the Second Administrative Reforms Commission holds significant validity. Centre-State relations have indeed acquired new dimensions due to the increasing political divergence. While competitive federalism can foster innovation and efficiency, it also poses challenges to national unity and policy coherence. A more collaborative and consultative approach, based on mutual respect and adherence to constitutional principles, is crucial for navigating these complexities and strengthening the Indian federal system. Regular inter-state council meetings and a more equitable distribution of resources are essential steps towards fostering a harmonious Centre-State relationship.
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.