Core Demand of the Question
- How Central sponsored schemes strains fiscal federalism.
- Ways to resolve fiscal strain.
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Answer
Introduction
The recent row between Tamil Nadu and Kerala over PM SHRI and Samagra Shiksha (SS) has once again highlighted tensions in Centre–State relations. While these schemes aim to improve education quality, the Centre’s growing financial and policy control has raised concerns about state autonomy and the spirit of cooperative federalism.
Body
How PM SHRI and Samagra Shiksha Show Strains in Federalism
- Central Terms Reduce State Freedom: States are often forced to accept centrally designed schemes to access funds, limiting flexibility in education policy.
Eg: Kerala and Tamil Nadu faced fund withholding under Samagra Shiksha for not adopting the NEP-linked PM SHRI, despite strong state systems.
- Fiscal Pressure as Policy Tool: Financial control allows the Centre to push policies even when states disagree, turning cooperation into compliance.
Eg: The Centre linked PM SHRI funding with NEP-2020, compelling reluctant states to fall in line.
- Concurrent List Imbalance: Education being a Concurrent List subject, central dominance reduces the scope for state-level innovation.
- Weak Federal Coordination: Platforms like NITI Aayog and the Inter-State Council lack real authority to resolve Centre–State disputes.
- Political Bias in Fund Allocation: Fund distribution sometimes reflects political alignment rather than developmental priorities, eroding trust.
Ways to Ease Centre–State Strain
- Strengthen Fiscal Federalism: Fund transfers should be predictable, rule-based, and shielded from political influence.
- Give States Policy Flexibility: States should be allowed to adapt central schemes to local needs while keeping core goals intact.
Eg: Introducing a ‘flexi-fund’ element in CSS can help states customize implementation.
- Empower Federal Institutions: Strengthen bodies like NITI Aayog and the Inter-State Council to mediate major policy changes.
Eg: Prior consultations before linking schemes with the NEP would promote consensus.
- Ensure Judicial Oversight: Courts should safeguard states’ fiscal rights and prevent misuse of central funds for political or policy coercion.
- Encourage Competitive Federalism: Reward innovation and best practices instead of enforcing uniformity across states.
Eg: Kerala’s achievements in education and health can inspire others through collaboration, not control.
Conclusion
The goal should not be to weaken central initiatives but to make them truly cooperative. A balanced approach where the Centre provides resources and direction while states retain flexibility will strengthen federal harmony. Respecting diversity in policy design is key to achieving both national goals and state empowerment.
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