sickle_s.gif (30476 bytes) People's Democracy

(Weekly Organ of the Communist Party of India (Marxist)

Vol. XXVI

No. 14

April 14,2002


17TH CONGRESS RESOLUTION

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 the economy of state governments. The character of India as a multi-national, multi-lingual, multi-religious state is being blatantly ignored and attempts to impose a unitary form of government are being made in the country.

The relevant recommendations of the 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 there is a persistent trend of centralisation of economic and political powers in the country. The examples of abuse of article 356 of the constitution to dislodge the elected RJD government in Bihar on two occasions 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 paying due importance to the opinion of the state governments before the 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 violated by the governor of Uttar Pradesh, which is a shameful example after the historic judgement of the Supreme Court in Bommai case. Numerous examples of gross interference by the central government in the law and order matters of the states have come to light.

The uneven economic development in the country is becoming more acute due to the failure of the central government to pay special attention for the development of the economically backward states. In order to preserve the unity and integrity of the country, this aspect assumes crucial importance.

In the financial sphere, the centre is forcing the introduction of the IMF-WTO-World Bank-led policy of liberalisation on the states, by deliberately causing serious economic problems for the states, and pressurising them to sign MoUs for toeing the line of liberalisation policy as the price for any paltry central assistance. It is anti-people and contrary 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 states’ share of devolution from the combined pool of central taxes be raised from the existing 29 per cent to 50 per cent and, to begin with, to at least 33.33 per cent, 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 per cent 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 burdens on to the states by making all the new central schemes 100 per cent loan-based schemes. The rate of interest is as high as 12 per cent although the centre itself is domestically raising loan only at 7 per cent, 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 per cent of the additional burden of the states due to pay revision related to the central decision should be conceded. Further, the centre should continue and strengthen the subsidised public distribution system of essential commodities, in full coordination with the state governments.

The 17th congress of the CPI(M), while strongly opposing the NDA government’s attempt to throttle the state governments, calls upon all party units and people of India to organise countrywide protest movements all over the country. It is only through such powerful movements that the present anti-people policies of the central government can be changed and the powers of the state governments can be enhanced, which will preserve national unity and integrity of India in the true sense.

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