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.
The Union Government has introduced several changes affecting Centre-State relations recently, reflecting a dynamic interplay within India's federal structure. Key shifts include the implementation of the Goods and Services Tax (GST), which, while streamlining indirect taxation, has altered states' financial autonomy by centralizing revenue collection. Amendments to All India Services rules concerning deputation and transfers of IAS/IPS officers have sometimes been perceived as increasing central control over state administration. Furthermore, the rationalization and restructuring of Centrally Sponsored Schemes have changed funding patterns, impacting states' developmental priorities. The evolving role of NITI Aayog, replacing the Planning Commission, emphasizes cooperative federalism but also redefines the traditional planning dynamics. Additionally, legislative interventions on subjects like education or electricity have occasionally led to concerns about central overreach into state domains.
To build trust and strengthen federalism, several measures are crucial. Firstly, regular and substantive meetings of the Inter-State Council should be revitalized to provide a genuine platform for dialogue and conflict resolution. Secondly, fiscal federalism needs strengthening by ensuring timely release of states' shares in central taxes and grants, and greater transparency in GST compensation mechanisms. Thirdly, respecting state autonomy in subjects primarily listed in the State List is paramount, minimizing unilateral central legislation. Lastly, reforming the role of Governors, ensuring their impartiality, and actively involving states in national policy formulation can foster a more collaborative and less confrontational Centre-State relationship, reinforcing the spirit of cooperative federalism.
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Sakshi Negi
Sakshi Negi is a Delhi-based journalist and content specialist with expertise in educational content and digital media, focusing particularly on government exam preparation and career guidance. With a degree in Journalism and Mass Communication from NRAI School of Mass Communication and her background as a Kendriya Vidyalaya alumna, she brings unique insights into the Indian education system and government sector opportunities.
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