Q13. What changes has the Union Government recently introduced in the domain of Centre-Stare relations? Suggest measures to be adopted to build the trust between the Centre and the States and for strengthening federalism. (Answer in 250 words)
Kartavya Desk Staff
Introduction:
Centre-State relations are fundamental to India’s federal structure, playing a key role in ensuring balanced governance and development. Part XI and XII of the Indian Constitution is focussed on Centre-state relations.
Changes in Centre-State Relations:
• Implementation of Goods and Services Tax (GST): GST has transformed the tax collection and distribution mechanism, affecting the financial autonomy of states and their revenue generation capabilities.
• Amendments to All India Services Rules: Recent changes in policies regarding the deputation and transfer of IAS, IPS, and IFoS officers have granted the Centre increased control, potentially undermining state administrative autonomy.
• Restructuring of Centrally Sponsored Schemes: Rationalization of these schemes has altered funding patterns and implementation processes, impacting state-level development initiatives and priorities.
• NITI Aayog’s Evolving Role: As a successor to the Planning Commission, NITI Aayog has redefined planning and policy coordination, emphasizing a more collaborative approach but also altering traditional Centre-State dynamics.
Measures to Build Trust and Strengthen Federalism
• Revitalize the Inter-State Council: Convene meetings to discuss and address Centre-State issues, ensuring all states have a platform for their concerns.
• Follow-Up Actions: Implement follow-up mechanisms for decisions made in these meetings to ensure accountability and effectiveness.
• GST Review: Regularly review GST implementation based on state feedback to ensure fairness and effectiveness in revenue sharing.
• Timely Releases: Ensure prompt disbursement of states’ shares in central taxes and grants to support their financial health.
• Strengthen Cooperative Federalism:: Involve states in the formulation of national policies, ensuring their interests and concerns are adequately represented.
• Respect for Autonomy: Uphold state autonomy in subjects listed under the State List, fostering a more respectful relationship.
• Reform the Role of Governors: Establish transparent guidelines for the appointment and functions of Governors to minimize political interference.
• Impartiality Assurance: Ensure Governors act impartially as a link between the Centre and States, fostering trust.
• Empower Local Self-Governance: Enhance the capacities of Panchayati Raj Institutions and urban local bodies to ensure effective local governance.
• Devolution of Powers: Ensure proper devolution of funds, functions, and functionaries to empower local bodies in decision-making.
Committee recommendations:
• Sarkaria Commission, 1983: The institution of All-India Services should be strengthened, and more such services should be created. The Union should occupy only that much field of a concurrent subject on which uniformity of policy is needed and leave the rest for state action.
• The institution of All-India Services should be strengthened, and more such services should be created.
• The Union should occupy only that much field of a concurrent subject on which uniformity of policy is needed and leave the rest for state action.
• MM Punchhi Commission, 2007: The scope of devolution of powers to local bodies to act as institutions of self-government should be constitutionally defined through appropriate amendments. The Commission has recommended a fixed five-year tenure for Governors and their removal only through impeachment by the state Assembly along the same lines as that of the President by the Parliament.
• The scope of devolution of powers to local bodies to act as institutions of self-government should be constitutionally defined through appropriate amendments.
• The Commission has recommended a fixed five-year tenure for Governors and their removal only through impeachment by the state Assembly along the same lines as that of the President by the Parliament.
• National Commission to Review the Workings of the Constitution (NCRWC), 2000 In accordance with Article 307, the Inter-State Trade and Commerce Commission should be established as a legislative body. Emergency and disaster management should be covered in the Concurrent List of the Seventh Schedule.
• In accordance with Article 307, the Inter-State Trade and Commerce Commission should be established as a legislative body.
• Emergency and disaster management should be covered in the Concurrent List of the Seventh Schedule.
Conclusion:
To build trust and strengthen federalism, continuous dialogue, cooperation, and mutual respect are imperative between both levels of government. By implementing these measures, the Union Government can foster a more harmonious relationship with the states, enhancing overall governance and development.