Coercive Federalism: Erosion of State Power and Rising Debt
The Congress has accused the government of coercive federalism, which undermines state independence by centralizing power and increasing state debt. Citing a CAG report, debt on states has reportedly tripled, posing a threat to cooperative federalism and decentralization.
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- India
On Saturday, the Congress launched a scathing attack on the government, accusing it of practicing coercive federalism that erodes state independence and turns them into mere municipalities. The accusation was supported by a CAG report indicating that state debts have ballooned to nearly Rs 60 lakh crore over the past decade.
Congress general secretary Randeep Surjewala claimed that India's federal structure is under severe threat. He said states burdened with tripled debt levels are being further undermined by the government's poor handling of GST compensation and arbitrary central levies, leading to dire fiscal implications.
Surjewala emphasized that this centralization is strangling states by reducing their functionality and power. The issue is aggravated by the improper utilization of cesses and surcharges, which leave states financially crippled. This scenario, Surjewala argued, threatens to permanently alter the cooperative and democratic framework of Indian federalism.
(With inputs from agencies.)
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