ON RESTRUCTURING OF CENTRE-STATE RELATIONS

The 17th Congress of the CPI(M) expresses concern at the growing attacks on the rights of the Indian states adversely affecting federal character of the Indian polity and crippling economy of the state governments. The character of India as a multi-national, multi-lingual, multi-religious state is being blatantly ignored and attempts to impose unitary form of Government are being made in the country. The relevant recommendations of Sarkaria Commission on the restructuring of Centre State relations are not being accepted and implemented in true spirit by the NDA Government as a result of which a persistant trend of centralisation of economic and political power is intressed in the country. The recent example of abuse of Article 356 of the constitution dislodge the elected RJD Government in Bihar on two ocassions and the summary removal of the Governor of Tamilnadu for mere refusal to accept the Central dictate are not isolated instances. The democratic concept of consulting the state governments and pay due importance to the opinion of the State Government before appointment of Governors is purposefully violated. The right of the largest party in the state elected by the people to prove its majority on the floor of the Assembly is also being allowed to be trampled underfoot by the Governor. U.P is its shameful example after the historic judgement of the Supreme Court in Bommai case. The uneven economic development in the country is further aggravating due to the failure of the central government to pay special attention to the development of the weaker states. In order to preserve unity and integrity of the country this aspect assumes crucial importance. In the financial sphere, the Centre is forcing to introduce the IMF-WTO-World Bank – led policy of liberlisation on the states, by deliberately causing serious economic problems for the states, and pressurizing them to sign MOU for toeing the line of liberlisation policy as the price for any paltry central assistance. Which is anti people and discrimination to the interest of the states and the county as a whole. Although there was a decision in the Standing Committee of Inter state council that the state’s share of devolution from the combined pool of central taxes be raised from the existing 29 percent to 50 percent and, to begin with, to atleast 33 1/3 percent, no decision has been taken by the Centre on this issue by resorting to dilatory tactics. The BJP-led Central Government has again betrayed the states by not fulfilling its commitment of bearing 50 percent of additional burden of the states due to pay revision related to the central decision on this issue. The BJP-led Government is passing its own financial problems by creating loan burden on the states by making all the new central schemes as 100 percent loan-based schemes with rate of interest as high as 12 percent although the Centre itself is domestically raising loan only at 7 percent, and transferring the net small savings collection in the states (i.e. net of deduction for withdrawals of depositors) once again as loans to the states at a high rate of interest. The demands of the state governments that the centre should bear 50 percent of the additional burden of the states due to pay revision related to the central decision, the centre should continue and strengthen subsidised public distribution system of essential commodities in full co-ordination with the state governments have not yet been implemented. All these policies have put many state governments in a precarious financial position. The 17th Congress of the CPI(M) while strongly opposing of the NDA Government to throttle the state governments calls upon all party units and people of India to organise country wide protest movement all over country. It is only through such powerful movements that the present derogatory policies of the Central Government can be changed and a correct policies are accepted by the Central Government which will ensure strengthening of the powers of the state government and ensure preserving national unity and integrity of India in the true sense.