What changes has the Union Government recently introduced in the domain of Centre-State relations? Suggest measures to be adopted to build the trust between the Centre and the States and for strengthening federalism. (250 words)
The Union Government has introduced various changes in Centre-State relations to enhance cooperation and promote balanced federalism. Recent reforms aim to address economic, administrative, and political aspects, but they have also raised concerns about potential centralization of power.
Recent Changes in Centre-State Relations
- GST Compensation Period Extension (2023): The government extended GST compensation for five years to help states recover revenue losses, ensuring fiscal support during financial stress.
- New National Education Policy (NEP) 2020: It emphasizes collaborative decision-making between the Centre and States in education, ensuring state-specific needs are integrated into national goals.
- Aspirational Districts Programme: Implemented to involve states in addressing developmental challenges in underdeveloped districts, with financial and technical support from the Centre.
- Greater Financial Devolution: As per the 15th Finance Commission (2020-21), 41% of the central tax pool is allocated to states, ensuring more resources for state-level initiatives.
- Centralization through Farm Laws (2020): The unilateral enactment of farm laws without adequate consultation with states created friction, as agriculture is a state subject, raising concerns about the Centre’s overreach.
- Reduction of State Borrowing Limits (2021): The Centre imposed conditions on states’ borrowing capacities under the Fiscal Responsibility and Budget Management Act, limiting their financial autonomy.
Measures to Build Trust and Strengthen Federalism
- Strengthening Cooperative Federalism: Encourage regular meetings of bodies like the Inter-State Council and NITI Aayog, fostering dialogue and resolving disputes amicably.
- Ensuring Financial Autonomy: Guarantee timely GST compensation payments and ensure transparent devolution of funds to enable fiscal autonomy for states.
- Decentralization of Powers: Devolve more decision-making powers to states in subjects of concurrent and state lists, respecting regional diversity.
- Improving Centre-State Communication: Establish a permanent consultative mechanism between the Centre and States to avoid unilateral policy changes.
- Inclusive Legislation: Ensure states’ participation in drafting laws affecting them, particularly on subjects under the Concurrent List.
Conclusion: The Union Government’s changes reflect both positive initiatives and challenges in Centre-State relations. Building mutual trust, respecting autonomy, and enhancing dialogue are crucial for strengthening India’s federal structure.
