Is federalism in retreat under single-party hegemony?, Pg9

Key Highlights:

• GST rationalization has sparked Centre-State tensions due to states' concerns about declining revenue.
• Opposition-ruled states are in conflict with the Centre over centrally sponsored schemes and disaster relief funds.
• Abolition of the Planning Commission and changes in resource allocation post-2014 have shifted Centre-State dynamics.
• Rising cesses and surcharges, which are not devolved to states, are affecting state economies.
• Delimitation may lead to larger, more populated states having more political power.

Detailed Insights:

• The federal coalition of the 1990s, characterized by regional party influence, contrasts with the current single-party dominance and its implications for federalism.
• The GST Council has not strengthened the federal spirit, with the Centre seemingly taking unilateral decisions.
• Southern states question whether they are being penalized by the Finance Commission's allocation formula, which favors northern states due to the inverse-income formula.
• The Centre's increasing use of cesses and surcharges, which are not shared with states, reflects a lack of good faith.
• Centrally sponsored schemes are being used by the Centre to encroach on states' responsibilities, leading to political impasse.
• Electoral bonds have reshaped electoral financing, potentially weakening regional capital and local entrepreneurship.
• The 'one nation, one election' proposal is viewed as a tool that uses the logic of efficiency but may not solve the structural challenges of Indian democracy.

Key Concepts Involved:

• Federalism: A system of government in which power is divided between a central authority and constituent political units.
• GST Council: A constitutional body responsible for making recommendations on issues related to the Goods and Services Tax in India.
• Finance Commission: A constitutional body that determines the method and formula for distributing tax revenues between the Centre and states.
• Centrally Sponsored Schemes: Programs implemented by state governments but largely funded by the central government.