Model Answer
0 min readIntroduction
Indian federalism, as enshrined in the Constitution, is a unique blend of centralizing and decentralizing forces. While the Constitution establishes a strong Centre, it also recognizes the autonomy of States. However, the implementation of certain policies, particularly those impacting State finances and legislative powers, has raised concerns about the erosion of federal principles. The Goods and Services Tax (GST) and the National Eligibility cum Entrance Test (NEET) are two prominent examples that have sparked debates regarding the Centre-State relationship, leading to accusations of overreach and undermining cooperative federalism. These policies, while intended to streamline processes and ensure uniformity, have presented significant challenges to the established federal structure.
Understanding Indian Federalism
The Indian Constitution, though unitary in spirit, adopts a federal structure as outlined in Articles 131, 245-248, and the Seventh Schedule. This division of powers between the Union and States is a cornerstone of governance. However, this federalism isn’t rigid; it’s often described as ‘cooperative federalism’ where the Centre and States collaborate. The Finance Commission plays a crucial role in this cooperation, recommending resource allocation.
GST and its Impact on Federalism
The Goods and Services Tax (GST), implemented in 2017, replaced a multitude of indirect taxes with a unified tax regime. While aiming for economic integration and ease of doing business, GST has presented challenges to federalism:
- Loss of Fiscal Autonomy: States surrendered their power to levy certain taxes, leading to a dependence on the Centre for revenue sharing. This impacts their ability to independently formulate fiscal policies.
- GST Council Disputes: The GST Council, a constitutional body, is meant to be a collaborative forum. However, disputes have arisen regarding decision-making, particularly concerning compensation to states for revenue losses. The Kerala High Court in Kerala State v. Union of India (2023) highlighted concerns regarding the Council’s decision-making process.
- Compensation Cess Issues: Delays in receiving GST compensation from the Centre created financial strain for many states, leading to friction.
NEET and its Impact on Federalism
The National Eligibility cum Entrance Test (NEET), mandated for admission to medical colleges, has also triggered federal tensions:
- Infringement on State Autonomy: States argue that NEET encroaches upon their right to regulate education within their jurisdiction, as enshrined in Entry 25 of the State List in the Seventh Schedule.
- Language Concerns: The conduct of NEET in multiple languages has been a contentious issue, particularly for states with different regional languages.
- Private Medical College Regulation: States have expressed concerns about the Centre’s increasing role in regulating private medical colleges, impacting their policy space.
- Judicial Intervention: The Supreme Court has repeatedly upheld the validity of NEET, citing the need for a uniform standard of medical education. However, this has not quelled the concerns of states regarding their autonomy.
Balancing Centralization and Decentralization
The challenges posed by GST and NEET are not necessarily indicative of a complete breakdown of federalism. They represent a dynamic tension between the need for national integration and the preservation of State autonomy. The Centre’s actions are often justified on grounds of national interest, economic efficiency, and ensuring quality standards. However, a more consultative and collaborative approach is crucial to address the concerns of States and maintain the delicate balance inherent in Indian federalism.
| Policy | Challenge to Federalism | Centre’s Justification |
|---|---|---|
| GST | Loss of fiscal autonomy, disputes in GST Council | Economic integration, ease of doing business, uniform tax regime |
| NEET | Infringement on State’s legislative powers, language concerns | Uniform standard of medical education, merit-based selection |
Conclusion
The implementation of GST and NEET undeniably presents challenges to Indian federalism, highlighting the ongoing negotiation between centralization and decentralization. While these policies aim for national objectives, their impact on State autonomy and fiscal powers cannot be ignored. A robust cooperative federalism, characterized by genuine consultation, equitable resource sharing, and respect for State concerns, is essential to navigate these challenges and ensure a harmonious Centre-State relationship. The future of Indian federalism hinges on striking a balance that fosters both national unity and regional diversity.
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.