People's Democracy

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

Vol. XXVII

No. 06

 February 09, 2003


LF Calls For Restructuring Of Centre-State Relations

B Prasant

THE Bengal Left Front, meeting in Kolkata at the Muzaffar Ahmad Bhavan on January 30, has called for a statewide movement to strengthen the demand for a thorough reorganisation of the ongoing pattern of centre-state relations.

The Bengal LF believes that under the BJP dispensation, the union government has organised a planned assault on the states’ rights and is bent upon wrecking the federalist structure of the country, which was affecting every state of India, and that it is imperative to mobilise the people on the basis of the demand for a restructuring of the present relationship between the union government and the state governments.

The crux of the issue affecting the financial condition of the state governments, including Bengal, has to do with the fact that the union government has proved extremely reluctant to emote the role it is expected to play according to the Indian Constitution.  Before the crisis deepens further, believes the Bengal Left Front, the mass of the people must be made to get involved in a statewide movement calling for a reorganisation of centre-state relations.

Later, speaking to the media, Left Front chairman, Biman Basu accused the union government of “acting like a mahajan (or money-lender), lending money to the state government at 12 per cent while getting the RBI to loan the amount to the union government at 7 per cent.” 

Biman Basu also noted that in the face of severe discrimination, most state governments had had to cut down on payment of salaries, and that Bengal LF government was an exception in this regard. The Bengal government, Basu pointed out, was working towards the maximum utilisation of its limited resources in an endeavour to keep up the ongoing and wide-ranging developmental work.

Elsewhere at the Writers’ Buildings, Dr Asim Dasgupta, finance minister of the Bengal LF government released a booklet that outlines the problems and prospects of the state government in financial matters.

The booklet notes that the assault on the states’ rights has been orchestrated as a direct fall out of the policy of liberalisation adopted by the union government.  It highlights the manner in which the union government has of late been keen on interfering with the welfare programmes of the Bengal LF government and how it has sought to cut down on the states’ rights in general. 

The booklet specifies the manner in which the state government has engaged itself to mobilise resources towards achieving its goal of maintaining an 8 per cent growth of the state domestic product while keeping up efforts to further increase employment generation.

The booklet underlines health, education, power, and communications as the priority areas, especially in the rural stretches.  Later, Dr Dasgupta told the media representatives that the state government was keen to protect its plan and non-plan budgetary targets in large measure.  However, as the booklet underlines, the present financial crisis towards which the union government appeared determined to push the state governments, could only be resolved if the present structure of centre-state relations could be decentralised in a thoroughgoing manner.  This would benefit the mass of the people of all the states, the booklet points out.