Answer:

Introduction:

Centre-State relations in India are governed by constitutional provisions outlined in Articles 245 to 263, which detail legislative, administrative, and financial relations. These provisions aim to balance power between the Centre and the States, fostering cooperative federalism essential for national unity and development.

Body:

Dynamics of Centre-State Relations in India:

Up-Sides:

• Enhanced Financial Cooperation:
  • GST Implementation: Introduction of GST in 2017 unified the tax system, enhanced revenue collection and reduced interstate tax barriers.
  • Finance Commission Recommendations: The 14th Finance Commission raised the share of States in the divisible pool of central taxes to 42% from 32%, which was further rationalised to 41% by 15th Finance Commission.
    
• Cooperative Federalism Initiatives:
  • NITI Aayog: Replaced the Planning Commission to foster state participation in policy-making, focusing on cooperative federalism .
  • COVID-19 Management: Collaborative efforts between Centre and states during the pandemic, including fund allocation and resource distribution, highlighted effective cooperation.

Down-Sides

• Political Frictions:
  • Governor’s Role: Controversies over Governors’ actions in states like West Bengal and Maharashtra have strained Centre-State relations, perceived as central interference.
  • Article 356 (President’s Rule): Frequent use of President’s Rule in opposition-ruled states has been criticised as undermining federal principles.
• Financial Strain:
  • GST Compensation Delays: States have faced delays in receiving GST compensation, leading to financial stress.
    For example: Punjab and Kerala voiced concerns over delayed payments.
  • Reduction in Central Schemes: Reduced central funding for various state schemes has impacted state finances, affecting development projects.
• Legislative Overreach:
  • Farm Laws: The central government’s farm laws in 2020 faced massive opposition from states, arguing they encroached on state jurisdiction over agriculture.
  • Environmental Regulations: Central legislation on environmental regulations has sometimes clashed with state policies, causing friction.

Measures to Strengthen Federalism and Balanced Development

• Strengthening Inter-State Council:
  • Regular Meetings and Enhanced Powers: Regular meetings and enhanced powers of the Inter-State Council can facilitate dialogue and resolve disputes, promoting cooperative federalism.
    For example: The revival of the Inter-State Council in 2016 after a decade showed potential for proactive issue resolution.
• Fiscal Decentralisation:
  • Timely GST Compensation: Ensuring timely GST compensation and revisiting the revenue-sharing formula to provide states with more financial autonomy.
• Reforming Governor’s Role:
  • Impartial Role of Governors: Clearly defining the Governor’s role to act impartially, reducing perceptions of bias and central interference.
  • For example: Recommendations from the Sarkaria and Punchhi Commissions to ensure Governors are not seen as central agents.
• Policy Inclusivity:
  • State Involvement in National Policies: Increasing state involvement in the formulation of national policies, especially those impacting concurrent and state lists, ensures policies reflect regional needs.
    For example: Joint committees for policy areas like agriculture and education to ensure state-specific concerns are addressed.
• Enhanced State Capacities:
  • Support for Implementation of Development Projects: Providing states with technical and financial support to implement development projects effectively, ensuring balanced growth.
  • For example: The Aspirational Districts Programme, where the Centre supports states in improving socio-economic indicators in the most underdeveloped districts.

Conclusion:

Strengthening federalism in India requires a balanced approach that respects state autonomy while maintaining national unity. Implementing the suggested measures can foster cooperative federalism, ensuring balanced development across India’s diverse states. Future strategies must prioritise dialogue, decentralisation, and fair resource distribution to achieve this balance.