Model Answer
0 min readIntroduction
Centre-State relations, a cornerstone of Indian federalism, have witnessed evolving dynamics since independence. While the Constitution envisages a cooperative federal structure (Article 268-297), recent years have seen a discernible shift towards centralization, sparking debates about the balance of power. This has been particularly evident in areas of finance, administration, and legislative competence. The introduction of schemes like the Agnipath scheme without adequate consultation with states, and changes in the terms of reference of centrally sponsored schemes, exemplify this trend, necessitating a re-evaluation of the existing framework and proactive measures to foster trust and strengthen federalism.
Recent Changes in Centre-State Relations
The Union Government has introduced several changes impacting Centre-State relations, broadly categorized as follows:
- Financial Changes: The 15th Finance Commission’s recommendations led to a reduced share of states in the divisible pool of taxes. Furthermore, the imposition of cesses and surcharges by the Centre, which are not shared with states, has further strained state finances. The Goods and Services Tax (GST) compensation period ended in June 2022, adding to the fiscal challenges faced by states.
- Administrative Changes: Extension of the jurisdiction of central agencies like the CBI and ED into states without prior consent, and the appointment of central observers for state-level projects, have been perceived as encroachments on state autonomy. The implementation of centrally sponsored schemes with increased central control and conditionalities has also raised concerns.
- Legislative Changes: The Government of National Capital Territory of Delhi (Amendment) Act, 2021, which curtailed the powers of the Delhi government, and amendments to laws concerning subjects in the State List (like labour laws) have been viewed as undermining the federal structure.
- Policy Implementation: The implementation of schemes like Agnipath, and changes to environmental regulations impacting states without adequate consultation, have led to friction.
Measures to Build Trust and Strengthen Federalism
To address these challenges and foster a more cooperative federalism, the following measures are crucial:
- Strengthening the Inter-State Council: Revitalizing the Inter-State Council (Article 263) with regular meetings, a dedicated secretariat, and a clear agenda focused on resolving Centre-State disputes and promoting policy coordination is essential.
- Financial Devolution & Fiscal Responsibility: Increasing the states’ share in the divisible pool of taxes, reducing the reliance on cesses and surcharges, and extending the GST compensation mechanism (even temporarily) can alleviate financial pressures on states. Promoting fiscal discipline at both levels is also vital.
- Respecting State Autonomy: The Centre should refrain from enacting laws on subjects in the State List without prior consultation and consensus. The use of central agencies should be guided by principles of federalism and transparency.
- Enhanced Consultation & Coordination: Establishing institutional mechanisms for regular dialogue and consultation between the Centre and States on policy matters, particularly those impacting states directly. This includes pre-legislative consultation and seeking state governments’ views on major policy initiatives.
- Cooperative Federalism in Policy Implementation: Centrally sponsored schemes should be designed with greater flexibility, allowing states to adapt them to their specific needs and priorities. The Centre should act as a facilitator rather than a controller.
- Judicial Intervention & Constitutional Review: The Supreme Court’s role in adjudicating Centre-State disputes is crucial. Periodic constitutional reviews to address emerging challenges to federalism are also necessary.
Table: Comparing Approaches to Centre-State Relations
| Feature | Competitive Federalism (Pre-2014) | Cooperative Federalism (Ideal) | Current Trend (Post-2014) |
|---|---|---|---|
| Focus | States competing for central funds | Collaboration and consensus-building | Centralization and control |
| Financial Devolution | Moderate | Substantial and predictable | Reduced share, increased cesses |
| Policy Making | States having significant autonomy | Joint policy formulation | Central dominance |
| Consultation | Regular and meaningful | Frequent and inclusive | Limited and often symbolic |
Conclusion
Strengthening Centre-State relations is paramount for India’s continued progress and stability. While a strong Centre is necessary for national unity and economic development, respecting state autonomy and fostering a spirit of cooperative federalism are equally crucial. A renewed commitment to dialogue, consultation, and equitable resource distribution will not only build trust between the Centre and States but also unlock the full potential of India’s diverse and dynamic federal structure. Moving forward, a pragmatic approach that balances national interests with regional aspirations is essential for a truly ‘One India, Strong India’.
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.