What changes has the Union Government recently introduced in the domain of Centre–State relations? Suggest measures to be adopted to build trust between the Centre and the States and for strengthening federalism.

“Indian Union is a unitary state with subsidiary federal features rather than a federal state with subsidiary unitary features.”  –K.C. Wheare.

Centre-State relations in Indiaare governed by constitutional provisions outlined inArticles 245 to 263, which detail legislative, administrative, and financial relations.

## Changes introduced by union government in the domain of centre-state relations

• GST Compensation Extension: The government extended the compensation cess for states under theGoods and Services Tax (GST)system to support state finances post-pandemic.


• Changes in Financial Relations: Recommendations of15th Finance Commissionwere implemented, with afocus on reducing the share of states in central taxes, which somestates perceived as diminishing their fiscal autonomy.


• Strengthening role of NITI Aayogin facilitatingcooperative federalism and collaborative decision-makingbetween the Centre and States.Eg: NITI Aayog has conducted workshops with State governments to develop tailored strategies for achievingSDGs.


• National Education Policy (NEP) 2020setsnational framework for education.However, Some states expressedconcerns over uniform national policy that may not consider regional and linguistic diversity, thereby affecting state autonomy in framing educational policies.


• Disaster Response Funds: Enhanced flexibility given to states in using the SDRF for specific local disasters, post the COVID-19 pandemic.


• Greater Centralization of powers– Epidemic Diseases Act and Essential Commodities Act dueing COVID


• River Water Disputes Amendment Bill (2019): This bill aims to streamline the adjudication process for interstate river disputes, empowering the Centre to establish aDispute Resolution Committeeand reducing the time frame for resolution.

## Issues

## Measures To Build Trust Between Centre And State And Strengthening Federalism.

• Strengthening Inter-State Council with Regular meetings and enhanced powerscanfacilitate dialogue and resolve disputes, promoting cooperative federalism.Eg: The revival of the Inter-State Council in 2016 after a decade showed potential for proactiveissue resolution.


• Impartial Role of Governors – Eg: Recommendations from the Sarkaria and Punchhi Commissionsto ensure Governors are not seen as central agents.


• State Involvement in National Policiesespecially those impacting concurrent and state lists,ensures policies reflect regional needs.Eg:Joint committees for policy areas like agriculture and education to ensure state-specific concerns are addressed.


• Punchhi commissionrecommendedbinding consent of state during central legislations from concurrent list.


• Cooperative Federalism Projects:Initiatives likeEk Bharat Shreshtha Bharatencourage cultural and educational exchanges between states and centre and particular state,helpful in building trust.


• Judicial Precedents on Federal Balance: UpholdingS.R. Bommai vs Union of India judgment, reinforces state sovereignty and safeguards against arbitrary central dominance.

AsB. R. Ambedkar rightly said,“Federalism is critical for the unity of India; it accommodates the country’s diversity and allows states to flourish within the national framework.”

Click to Access Full Notes