“Indian Union is a unitary state with subsidiary federal features rather than a federal state with subsidiary unitary features.”  – K.C. Wheare. 

Centre-State relations in India are governed by constitutional provisions outlined in Articles 245 to 263, which detail legislative, administrative, and financial relations. 

Changes introduced by union government in the domain of centre-state relations 

1. GST Compensation Extension: The government extended the compensation cess for states under the Goods and Services Tax (GST) system to support state finances post-pandemic.
2. Changes in Financial Relations: Recommendations of 15th Finance Commission were implemented, with a focus on reducing the share of states in central taxes, which some states perceived as diminishing their fiscal autonomy.
3. Strengthening role of NITI Aayog in facilitating cooperative federalism and collaborative decision-making between the Centre and States. Eg: NITI Aayog has conducted workshops with State governments to develop tailored strategies for achieving SDGs.
4. National Education Policy (NEP) 2020 sets national framework for education. However, Some states expressed concerns over uniform national policy that may not consider regional and linguistic diversity, thereby affecting state autonomy in framing educational policies.
5. Disaster Response Funds: Enhanced flexibility given to states in using the SDRF for specific local disasters, post the COVID-19 pandemic.
6. Greater Centralization of powers – Epidemic Diseases Act and Essential Commodities Act dueing COVID
7. River Water Disputes Amendment Bill (2019): This bill aims to streamline the adjudication process for interstate river disputes, empowering the Centre to establish a Dispute Resolution Committee and reducing the time frame for resolution.

Issues

Measures To Build Trust Between Centre And State And Strengthening Federalism.

1. Strengthening Inter-State Council with Regular meetings and enhanced powers can facilitate dialogue and resolve disputes, promoting cooperative federalism. Eg: The revival of the Inter-State Council in 2016 after a decade showed potential for proactive issue resolution.
2. Impartial Role of Governors – Eg: Recommendations from the Sarkaria and Punchhi Commissions to ensure Governors are not seen as central agents.
3. State Involvement in National Policies especially those impacting concurrent and state lists, ensures policies reflect regional needs. Eg: Joint committees for policy areas like agriculture and education to ensure state-specific concerns are addressed.
4. Punchhi commission recommended binding consent of state during central legislations from concurrent list.
5. Cooperative Federalism Projects: Initiatives like Ek Bharat Shreshtha Bharat encourage cultural and educational exchanges between states and centre and particular state, helpful in building trust.
6. Judicial Precedents on Federal Balance: Upholding S.R. Bommai vs Union of India judgment, reinforces state sovereignty and safeguards against arbitrary central dominance.

As B. R. Ambedkar rightly said, “Federalism is critical for the unity of India; it accommodates the country’s diversity and allows states to flourish within the national framework.”