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. (2024, 15 Marks)

Paper	GS Paper 2
Word Limit	250 words
Syllabus Topic	Functions and responsibilities of the Union and the States; Issues and challenges of federal structure

Model Answer

India is a Union of States (Article 1) with a strong Centre. In the last decade, the Union has changed fiscal, planning and administrative links with the States. Some changes built cooperative federalism; others created friction.

Recent Changes

• Fiscal: The 101st Amendment (2016) brought GST and the GST Council (Article 279A), a forum of joint decision-making.
• Devolution: The 14th Finance Commission raised the States’ share of the divisible pool to 42%; the 15th set it at 41%.
• Planning: NITI Aayog replaced the Planning Commission in 2015.
• Jammu and Kashmir: Article 370 was made inoperative and the State became two Union Territories (2019).
• Delhi: The GNCTD (Amendment) Act, 2023 gave the Centre control over services.

Areas of Friction

• Rising cesses and surcharges, which are not shared with States.
• Delays by Governors on State Bills.
• Several States withdrew general consent to the CBI.

Measures to Build Trust

• Make the Inter-State Council (Article 263) meet regularly, as the Sarkaria and Punchhi Commissions advised.
• Consult the Chief Minister before appointing a Governor.
• Bring cesses into the divisible pool, or cap them.
• Follow S.R. Bommai (1994) limits on Article 356.
• Use Zonal Councils and the GST Council to settle disputes by consensus.
• Release grants and GST dues on time, using clear formulas.
• Respect federalism as part of the basic structure, as held in S.R. Bommai.

Conclusion

Strong States make a strong India. A Team India approach, built on dialogue and fair sharing of resources, is key to Viksit Bharat 2047.

Related PYQs

• Explain the significance of the 101st Constitutional Amendment Act. To what extent does it reflect the accomodative spirit of federalism? (2023)
• The concept of cooperative federalism has been increasingly emphasized in recent years. Highlight the drawbacks in the existing structure and the extent to which cooperative federalism would answer the shortcomings. (2015)
• Discuss the essential conditions for exercise of the legislative powers by the Governor. Discuss the legality of re-promulgation of ordinances by the Governor without placing them before the Legislature. (2022)