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.

Introduction

India’s federal structure, as enshrined in the Constitution, is characterized by a delicate balance of power between the Centre and the States. Recent developments, including legislative changes, fiscal policies, and administrative measures, have significantly impacted Centre-State relations. While these changes aim to enhance governance, they have also raised concerns about the erosion of cooperative federalism.

Key Changes in Centre-State Relations

1. Legislative Changes

• Abrogation of Article 370 (2019): Revoked the special status of Jammu and Kashmir, converting it into two Union Territories. This was seen as a unilateral decision by the Centre, bypassing the State Assembly.
• Farm Laws (2020): Although repealed later, these laws were criticized for encroaching on the State List (agriculture), sparking protests and debates on federalism.
• Extension of Central Laws to Union Territories: Increased central control over Union Territories like Delhi through amendments to the Government of NCT of Delhi Act, 2021.

2. Fiscal Federalism

• GST Compensation Cess Issue: Delays in releasing GST compensation to States have strained fiscal relations, with States alleging a breach of trust.
• 15th Finance Commission Recommendations: Reduced the share of tax devolution to States from 42% to 41%, citing the creation of Jammu and Kashmir as a Union Territory.
• Centrally Sponsored Schemes (CSS): Increased conditionalities and reduced flexibility in fund utilization have limited States' autonomy.

3. Administrative and Political Measures

• Governor’s Role: Instances of Governors withholding assent to State Bills (e.g., Tamil Nadu’s NEET exemption Bill) have led to tensions.
• Use of Article 356: Allegations of misuse of President’s Rule to dismiss State governments.
• Central Investigative Agencies: Increased intervention by agencies like the CBI and ED in State matters, often perceived as politically motivated.

4. Environmental and Infrastructure Policies

• River Water Disputes: Central interventions in disputes like the Cauvery and Krishna rivers have been contentious.
• National Infrastructure Pipeline (NIP): Centralized planning of infrastructure projects has sometimes overlooked State priorities.

Value Addition Block — Recent Developments in Federalism

Measures to Build Trust and Strengthen Federalism

1. Strengthening Cooperative Federalism

• Revive the Inter-State Council: Regular meetings to address disputes and foster dialogue.
• Empower Zonal Councils: Enhance their role in resolving regional issues.
• Institutionalize NITI Aayog’s Role: Make it a platform for collaborative decision-making rather than a top-down approach.

2. Reforms in Fiscal Federalism

• Timely GST Compensation: Ensure predictable and timely release of funds to States.
• Flexibility in CSS: Allow States to tailor schemes to local needs.
• Revisit Finance Commission Terms: Address concerns of States regarding shrinking devolution and increasing centralization.

3. Revisiting the Role of Governors

• Codify Governor’s Powers: Clearly define the discretionary powers of Governors to prevent misuse.
• Neutral Appointments: Ensure Governors are non-partisan and act as facilitators of federalism.

4. Judicial and Legislative Reforms

• Strengthen Dispute Resolution Mechanisms: Expedite cases related to Centre-State disputes in the Supreme Court.
• Consultative Lawmaking: Involve States in drafting laws on subjects in the Concurrent List.

5. Promoting Decentralization

• Empower Local Governments: Strengthen the 73rd and 74th Amendments to ensure devolution of funds, functions, and functionaries.
• Encourage State Autonomy: Avoid over-centralization in areas like education, health, and agriculture.

6. Building Political Consensus

• National Federalism Charter: Develop a consensus-based framework to respect the spirit of federalism.
• Avoid Partisan Politics: Foster trust by reducing political interference in State matters.

Way Forward

To ensure a harmonious Centre-State relationship, India must embrace collaborative federalism as envisioned by the Constitution. This requires fostering trust, dialogue, and mutual respect between the Centre and the States. Mechanisms like the Inter-State Council, Finance Commission reforms, and judicial clarity on contentious issues can pave the way for a more robust federal structure.

Conclusion

A strong and vibrant federal structure is essential for India’s unity and diversity. By addressing fiscal, legislative, and administrative concerns, and fostering cooperative federalism, India can achieve the vision of “Sabka Saath, Sabka Vikas, Sabka Vishwas” while ensuring inclusive and participatory governance.