The Changing Dynamics of Centre-State Relations under the Modi Government
Introduction
Centre-state relations in India have always been a delicate balance of power, cooperation, and conflict. Under the Modi government, these dynamics have undergone significant shifts, marked by both increased collaboration and heightened tensions. This article delves into the evolving nature of these relations, examining the key areas of change and their implications for Indian federalism.
Historical Context
India's federal structure, as enshrined in the Constitution, divides powers between the Union and the states. However, the central government has historically held a dominant position, leading to frequent disputes over resources, legislative authority, and policy implementation. The Sarkaria Commission (1983-1988) and the Punchhi Commission (2007-2010) have made recommendations to improve centre-state relations, but many challenges persist.
Key Areas of Change under the Modi Government
1. Fiscal Federalism
One of the most significant changes has been in fiscal federalism. The 14th Finance Commission (2015-2020) recommended a substantial increase in the states' share of central taxes, from 32% to 42%. This was aimed at providing states with greater financial autonomy. However, the central government also reduced grants to states, leading to debates about the net impact of these changes.
2. Goods and Services Tax (GST)
The introduction of GST in 2017 was a landmark reform that aimed to create a unified national market. While GST has simplified the indirect tax regime, it has also led to concerns about the loss of states' fiscal autonomy. States depend on the central government for GST compensation, which has sometimes been delayed, causing financial strain.
3. Policy Initiatives and Cooperative Federalism
The Modi government has emphasized 'cooperative federalism,' promoting dialogue and collaboration between the Centre and states. Initiatives like NITI Aayog, which replaced the Planning Commission, aim to involve states in the planning and policy-making process. However, critics argue that these initiatives often lack genuine state input and remain largely driven by the central government.
4. Political Tensions
Despite the rhetoric of cooperative federalism, political tensions between the Centre and states have often been high, particularly with states ruled by opposition parties. Disputes over issues like the Citizenship Amendment Act (CAA), farm laws, and the handling of the COVID-19 pandemic have led to strained relations. Accusations of political interference by the Centre in state affairs have also surfaced.
5. Role of Governors
The role of governors, appointed by the central government, has been a contentious issue. In several instances, governors have been accused of acting as agents of the Centre, undermining the autonomy of state governments. This has led to calls for greater clarity and impartiality in the appointment and functioning of governors.
Implications for Indian Federalism
The changing dynamics of centre-state relations have profound implications for Indian federalism. While increased fiscal devolution and cooperative initiatives are positive steps, persistent political tensions and concerns about central overreach pose challenges. Strengthening federal institutions, promoting genuine dialogue, and ensuring equitable resource distribution are crucial for maintaining a healthy federal structure.
Conclusion
The Modi government's tenure has witnessed significant shifts in centre-state relations. While there have been efforts to promote cooperative federalism and enhance states' financial autonomy, political tensions and concerns about central dominance persist. Addressing these challenges and fostering a more balanced and collaborative relationship between the Centre and states is essential for the future of Indian federalism.
