UPSC MainsPUBLIC-ADMINISTRATION-PAPER-II201520 Marks
Q7.

Briefly discuss the main recommendations of the Punchhi Commission (2010) on Centre-State relations for transforming Indian Federal System.

How to Approach

This question requires a focused answer on the Punchhi Commission's recommendations. The approach should be to first briefly introduce the commission and its context, then systematically outline its key recommendations categorized for clarity (e.g., legislative, administrative, financial). Highlight the recommendations aimed at strengthening cooperative federalism and addressing imbalances in Centre-State relations. Structure the answer around these categories, providing specific details for each. Avoid overly critical analysis; focus on presenting the recommendations as they were proposed.

Model Answer

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Introduction

The Indian federal system, while quasi-federal in nature, has historically faced tensions between the Centre and the States. To address these, the Commission on Centre-State Relations, commonly known as the Punchhi Commission, was constituted in 2007 under Justice Madan B. Lokur. Submitted in 2010, the Commission aimed to review the constitutional provisions relating to Centre-State relations and recommend solutions to strengthen the federal structure. Its recommendations sought to address issues of imbalances, overlapping jurisdictions, and the need for greater cooperation between the Union and the States, particularly in areas like finance, law and order, and governance.

Key Recommendations of the Punchhi Commission

The Punchhi Commission made a comprehensive set of recommendations, broadly categorized as follows:

1. Legislative & Constitutional Amendments

  • Article 356 (President’s Rule): The Commission recommended amending Article 356 to ensure its more judicious use. It suggested that before imposing President’s Rule, the Centre should exhaust all available avenues for resolving the crisis through dialogue and negotiation with the State government. It also proposed a time limit for the imposition of President’s Rule.
  • National Integration Council: Revitalizing the National Integration Council (NIC) to serve as a platform for regular dialogue and consultation between the Centre and States on issues of national importance.
  • Inter-State Disputes: Strengthening the Inter-State Council as a permanent body with a dedicated secretariat to resolve disputes between states effectively.
  • Amendments to the Seventh Schedule: The Commission suggested a review of the State List and Concurrent List to address ambiguities and overlapping jurisdictions.

2. Financial Recommendations

  • Tax Devolution: Increasing the States’ share in the divisible pool of central taxes. The Commission recommended a higher percentage of tax devolution to provide States with greater financial autonomy. (As of knowledge cutoff 2023, the 15th Finance Commission recommended 41% devolution).
  • Grants-in-Aid: Reforming the system of grants-in-aid to States, making it more transparent and predictable. The Commission advocated for a formula-based approach to grant allocation, considering factors like population, poverty, and infrastructure.
  • GST Compensation: While the GST was not yet implemented at the time of the Commission’s report, it anticipated the need for a robust compensation mechanism to address revenue losses faced by States during the transition to the GST regime.

3. Administrative & Governance Reforms

  • All India Services: The Commission proposed reforms to the All India Services (IAS, IPS, IFS) to enhance their accountability and responsiveness to the needs of the States. It suggested greater State control over the cadre management of these services.
  • Law and Order: Recognizing the importance of maintaining law and order as a State subject, the Commission recommended that the Centre should refrain from interfering in State police matters except in exceptional circumstances.
  • Cooperative Federalism: Promoting a spirit of cooperative federalism through greater consultation and collaboration between the Centre and States on policy matters.
  • Zonal Councils: Strengthening the role of Zonal Councils to foster greater coordination and cooperation among States within each zone.

4. Specific Issues

  • Naxalism: The Commission emphasized the need for a comprehensive strategy to address the Naxalite problem, involving both the Centre and the affected States. It advocated for greater investment in infrastructure and development in Naxal-affected areas.
  • Border Disputes: Establishing a mechanism for resolving inter-state border disputes through negotiation and mediation.
Area of Reform Punchhi Commission Recommendation
President’s Rule Judicious use, dialogue first, time limit
Financial Devolution Increase State share in divisible pool, formula-based grants
All India Services Greater State control over cadre management
Inter-State Disputes Strengthen Inter-State Council with permanent secretariat

Conclusion

The Punchhi Commission’s recommendations represent a significant attempt to address the long-standing issues in Centre-State relations and strengthen Indian federalism. While not all recommendations have been fully implemented, they continue to be relevant in the context of evolving dynamics between the Union and the States. The emphasis on cooperative federalism, financial autonomy for States, and judicious use of constitutional powers remains crucial for ensuring a harmonious and effective federal structure in India. Further reforms, building upon the Commission’s insights, are essential to address emerging challenges and promote a more balanced and equitable federal system.

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

Quasi-Federalism
A system of government that exhibits features of both a federal and a unitary system. India is often described as quasi-federal because, while it has a federal structure with division of powers, the Centre retains significant powers and authority.
Devolution of Funds
The transfer of financial resources from the central government to state governments, typically based on a formula that considers factors like population, area, and fiscal performance.

Key Statistics

As per the 15th Finance Commission (2020-2026), the States’ share in the divisible pool of central taxes is 41%.

Source: Fifteenth Finance Commission Report

According to data from the Ministry of Finance, the total amount devolved to states from central taxes in FY23 was approximately ₹8.57 lakh crore.

Source: Ministry of Finance, Government of India (Data as of knowledge cutoff 2023)

Examples

GST Implementation

The implementation of the Goods and Services Tax (GST) in 2017 is an example of cooperative federalism, involving consensus-building between the Centre and States on tax rates and administration.

Frequently Asked Questions

Why is Article 356 controversial?

Article 356, dealing with President’s Rule, is controversial because it allows the Central government to take direct control of a State, potentially undermining its democratic processes and federal autonomy. Its frequent use in the past led to concerns about its misuse.

Topics Covered

PolityGovernanceFederalismCentre-State RelationsFederalismPunchhi Commission