Undermining federalism: On central funding, states and education

In the Indian Constitution, federalism is the bedrock of cooperative governance, ensuring an equitable distribution of powers between the Centre and the States. This delicate balance has been eroded in recent allocating and controlling central funds, particularly in the education sector. The issue is not merely administrative but raises significant legal and constitutional concerns regarding the autonomy of States, their financial independence, and the spirit of cooperative federalism.

The Indian Constitution establishes a quasi-federal structure, clearly demarcating legislative and financial powers between the Union and the States. The Seventh Schedule bifurcates subjects into Union, State, and Concurrent lists. Education, which was originally under the State List, was moved to the Concurrent List through the 42nd Constitutional Amendment in 1976. This shift allowed the Centre and States to legislate on education, leading to shared responsibilities. The central government,

over the years, has introduced various education schemes—such as Sarva Shiksha Abhiyan (SSA), Rashtriya Uchchatar Shiksha Abhiyan (RUSA), and Samagra Shiksha Abhiyan—many of which impose rigid funding conditions on states. These schemes typically operate on a sharing basis, where the Centre provides a portion of funds while states must contribute the rest.

Recently, the Union Government’s decision to withhold Tamil Nadu’s central share of Samagra Shiksha funds due to its rejection of NEP 2020 raised significant concerns about federalism and the autonomy of states in policymaking. The Samagra Shiksha scheme, introduced in 2018- 19, was designed to integrate and improve school education by consolidating previous programs like the Sarva Shiksha Abhiyan and Rashtriya Madhyamik Shiksha Abhiyan. However, by linking the disbursal of these funds to the implementation of NEP, the Centre is using financial pressure to push its agenda, undermining the original purpose of the scheme, which aimed to provide equitable access to education without political or ideological conditions.

Over-centralization in education funding has led to policy implementation delays and state level governance inefficiencies. States with lower revenue-generating capacity struggle to match the Centre’s funding expectations, resulting in disparities in educational outcomes across the country. Moreover, excessive bureaucratic control by the Centre limits states from tailoring policies to their specific socio-economic and linguistic needs. For instance, regional languages

and locally relevant curricula often take a backseat in centrally designed policies. While a significant reform, the National Education Policy (NEP) 2020 also reflects this concern by pushing for uniform frameworks that may not align with the diverse educational needs of different states. To uphold the constitutional principles of federalism, there is an urgent need for a more equitable distribution of financial powers in education.

The essence of federalism lies in the equitable sharing of responsibilities and resources. Education, being a crucial factor in national development, should be governed through a truly cooperative federal approach. The Centre must act as a facilitator rather than a controller, ensuring that states retain their constitutionally guaranteed autonomy. Any move to undermine federalism not only disrupts governance but also weakens the democratic fabric of the nation. If India's education system is to thrive, it must be rooted in the spirit of decentralization, inclusivity, and respect for constitutional mandates.