Centre Vs States: Clash Over Relief Funds

Context

The Supreme Court has cautioned the Union government against engaging in a “contest” with drought-hit Karnataka over its request for drought relief. 

• Various other states like Tamil Nadu, Kerala, and Karnataka have also filed cases against the Union government in lieu of delays and perceived neglect in receiving disaster relief funds from the Centre.

Why Are States Filing Cases Against Union Government?

• Denial of disaster relief funds: Karnataka’s request for ₹18,171.44 crore under NDRF for drought relief has been pending for six months due to which a crop of ₹35,162.05 crore has been damaged in the State.
• Centre’s Failure to Meet Obligations Under Disaster Management Laws: Karnataka has also argued that the Centre has violated the Disaster Management Act, 2005 and not taking a decision on NDRF assistance within a month as mandated.
• Violation of fundamental rights of citizens:
  • Karnataka argues the Centre’s inaction violates the right to life (Article 21) and right to equality (Article 14) of its citizens by not providing assistance during a crisis.
• Centre exceeding its authority:
  • Kerala has also  accused the Centre of interfering in its net borrowing limits, pushing the state to a financial emergency.

Impact of Centre’s Failure to Offer Relief Funds on Indian Economy

• Limited Ability to Respond:
  • When relief funds don’t come on time, states may struggle to help affected people. This can slow down the recovery process and hurt the economy in the affected area.
• Financial Pressure on States:
  • If funds are delayed or denied, states may have to cut spending on important services or borrow more money. This will put extra strain on their budgets and increase their debt.
• Loss of Income and Productivity:
  • Farmers hit by droughts and people affected by floods or cyclones may lose their income. This situation would disable them from contributing to the economy as they used to.
• Decline in Agricultural Production:
  • Without proper assistance for farmers affected by drought, agricultural production could decline which will  impact food security and ultimately it will lead to high prices. 

What is the Role of the Supreme Court in this Matter?

The Supreme Court of India holds a vital position as the highest judicial authority in the country. 

• Setting legal precedent: The Court’s decisions in these cases can establish legal principles for future disputes between states and the Centre regarding disaster relief funds. 
  • It can clarify the Centre’s obligations under disaster management laws and the rights of states in seeking assistance.
• Ensuring accountability: By reviewing the Centre’s decisions and actions, the Court can hold the government accountable for following proper procedures and fulfilling its responsibilities towards disaster-stricken states.
• Promoting fair resource allocation: The Court can ensure fair and non-discriminatory allocation of disaster relief funds by the Centre. 
  • This can help prevent situations where some states feel neglected compared to others.
• Upholding the federal structure: By resolving disputes between states and the Centre, the Court plays a role in upholding India’s federal structure, ensuring a balance of power between the central and state governments.
• Interpreting the Constitution:
  • It interprets the Constitution, ensuring that the actions of both the Union and state governments follow its rules. 
    • The court emphasizes resolving conflicts internally to avoid disagreements between the Union and states.
• Reviewing Government Actions:
  • The Supreme Court checks government policies and decisions, ensuring that it aligns with the principles outlined in the Constitution and other relevant laws

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