The Aryavarth Express
Agency (New Delhi): Accusing the BJP government of “systematically eroding” India’s federal structure and reducing states to “mere municipalities”, the Congress party today pledged to restore the constitutional balance of power between the Centre and states. The party’s election manifesto promises to devolve more financial and legislative powers to states and local bodies, in line with the recommendations of the 14th Finance Commission and the 2nd Administrative Reforms Commission.
Pointing to the growing centralization of resources, with the Centre’s share in total tax revenue rising from 58% in 2014-15 to 63% in 2021-22 (Finance Commission, 2022), Congress vows to raise the states’ share to 50% and transfer the funds directly to their treasuries. It also promises to scrap the “coercive” practice of attaching conditionalities to central grants and loans.
To address the “trust deficit” between the Centre and states, particularly on the issue of Goods and Services Tax (GST) compensation, with states claiming unpaid dues of over Rs. 2.7 lakh crore (CAG, 2022), the manifesto pledges to create an independent GST Council Secretariat and give states a greater say in the decision-making process. It also promises to extend the compensation period for another 5 years till 2027.
On the critical issue of Centre-state relations in times of natural disasters and health emergencies, with states complaining of inadequate financial and logistical support during the COVID-19 pandemic, Congress vows to establish a National Disaster Mitigation Fund with an annual corpus of Rs. 25,000 crore. It also promises to set up a National Health Emergency Response System to coordinate between the Centre and states.
To empower local self-governments, which are facing a severe funds crunch, with over 2 lakh panchayats unable to pay staff salaries and maintain basic services (MoPR, 2022), the manifesto pledges to transfer 10% of central tax revenues directly to them as untied grants. It also promises to amend the 73rd and 74th Constitutional Amendments to give panchayats and municipalities more legislative and executive powers.
On the contentious issue of the National Capital Territory of Delhi, where the Aam Aadmi Party government has been locked in a power tussle with the Centre-appointed Lieutenant Governor, Congress promises to grant full statehood to Delhi and amend the NCT Act to give the elected government control over all subjects except land, law and order, and police.
In the conflict-torn state of Jammu and Kashmir, which was stripped of its special status and statehood by the BJP government in August 2019, the manifesto pledges to restore Articles 370 and 35A of the Constitution and hold free and fair elections within 6 months. It also promises to initiate a dialogue with all stakeholders, including separatists, to find a political solution to the Kashmir issue.
As India’s federal fabric comes under strain, with growing conflicts between the Centre and non-BJP ruled states on issues ranging from CBI raids to farm laws, the Congress manifesto offers a roadmap for cooperative federalism and decentralization. However, implementing these promises will require not just legal and policy changes but a fundamental shift in the political mindset and power equations that have enabled the current centralization drive.