Critically examine the changing nature of centre state relations in India.
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Answer:
IN the late seventies and early-eighties, there had been a massive upsurge in the demand for a re-ordering of centre-state relations, for greater fiscal autonomy for state governments through much larger non-discretionary devolution of resources from the centre to the states, and for a more authentic realisation of the federal spirit of the Constitution. This upsurge was led by the Left, but it had the support of most state governments and a large number of political parties, especially the regional parties. The Left governments of the time played a key role in this upsurge, and organised a number of conclaves, including the famous Srinagar conclave. The Left governments of the time, especially the West Bengal government, were facing acute fiscal difficulties. But these difficulties, far from deterring either the Left governments or other state governments, spurred them on to demand greater autonomy.
Matters today are vastly different. State governments, including the Left governments, are again facing acute fiscal crises. But there is hardly a murmur of protest. On the contrary, most state governments are vying with one another to be in the good books of the central government whose level of interference in state government affairs has reached unprecedented levels. The question naturally arises: why this difference between the two situations? The answer lies in the current triumph of neo-liberalism over our economy. The old struggle was over the fiscal resources at the command of state governments. Now, fiscal resources at the command of the state governments do not seem to matter much, as they vie with one another to attract private investment, and access external donors, always waiting in the wings with loans and “conditionalities”, to supplement fiscal resources. “Conditionalities” in turn do not arouse much hostility since the current triumph of neo-liberalism makes them appear necessary and even desirable.