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Important Editorial Summary for UPSC Exam

11 Jun
2024

A New Federal Bargain: Navigating Coalition Politics and Centre-State Relations in India (GS Paper 2, Polity)

A New Federal Bargain: Navigating Coalition Politics and Centre-State Relations in India (GS Paper 2, Polity)

Introduction:

  • The resurgence of coalition politics in India brings to the forefront crucial questions regarding federalism and the dynamics between the Centre and the states.
  • With the BJP's increased reliance on regional allies and its expanding footprint in southern India, there exists a potential for a reset in federal relations.
  • However, the path to such a transformation remains uncertain.

 

The Evolution of Centre-State Relations under the BJP:

Modi 1.0:

  • The BJP government initiated significant changes, including the dissolution of the Planning Commission and the establishment of Niti Aayog to promote cooperative federalism.
  • The introduction of the Goods and Services Tax (GST) marked a milestone in fiscal federalism, streamlining tax structures across states.

 

Modi 2.0:

  • The second term witnessed the abrogation of Article 370, signaling a shift towards centralization and a preference for a unified national agenda.
  • Proposals such as "One nation, one election" underscored this trend, potentially marginalizing state interests.

 

The Federalism Battle in the 2024 General Election:

  • Tensions over federalism intensified, particularly regarding the pending delimitation exercise. Southern states feared a skewed redistribution of parliamentary seats favoring populous northern states, threatening the balance of fiscal federalism.
  • The legitimacy of redistributive fiscal policies came under scrutiny, with the potential for partisan conflicts jeopardizing the fiscal pact.

 

The Return to Coalition Government:

Introduction of Multiple Centers of Power:

  • Coalition governance disperses decision-making authority, countering excessive centralization.
  • However, it may not necessarily bolster federalism, as regional parties primarily prioritize state-specific concerns.

 

Regional Parties' Interests:

  • Regional parties advocate for state-centric issues and vie for ministerial positions, with limited focus on broader federalism.
  • There's a risk that special-interest politics could undermine the broader federal compact.

 

Threats to Federal Bargain:

  • Special-interest regional agendas may politicize resource allocation, eroding trust in federalism.
  • There's a potential for coalition partners to align with the BJP's centralizing vision, posing challenges to the federal framework.

 

Potential for Renewed Federalism:

  • The current political landscape offers an opportunity to reexamine federal relations, especially with the changing electoral map.
  • A pan-India federal bargain is imperative to rebuild trust between the Centre and states, fostering cooperation and mutual understanding.

 

Prime Minister Modi's Role:

  • Modi's emphasis on cooperative federalism underscores the importance of collaborative governance.
  • Empowering institutions like the Inter-State Council and fostering consensus on contentious issues like delimitation are crucial steps towards strengthening federalism.

 

Conclusion:

  • The resurgence of coalition politics presents a pivotal moment for reimagining federalism in India.
  • By leveraging this opportunity to foster trust and collaboration between the Centre and states, India can chart a path towards inclusive and sustainable governance.
  • As the nation looks ahead, embracing a new vision for federalism holds the key to navigating the complexities of a diverse and dynamic democracy.