Democracy Dialogues Series 38

Organised by New Socialist Initiative
Theme : Federal fracture: A Nation in crisis

Speaker : Prof C P Chandrasekhar

Former Professor, Centre for Economic Studies and Planning ,JNU, Delhi

Time and Date : 6 PM (IST), Sunday, 30 th March, 2025, 

 facebook.com/newsocialistinitiative.nsi).

—————-

Theme :

Indian federalism is on the verge of breakdown for multiple reasons. A crucial contributor is the collapse of the system of revenue sharing between the Centre and the States and the weaponization of vertical transfers as an instrument for political contestation.

The conflict over resources in India’s quasi-federal political structure is by no means new. Framers of the Constitution, who recognised that the division of taxation rights and spending responsibilities between the two principal tiers of government in India was asymmetrical, sought to partially resolve this problem by providing for a share for the States in a defined set of tax revenues garnered by the Centre, with the principles governing the share devolved and distributed to individual States recommended by successive Finance Commissions. But State governments have been increasingly disappointed with the actual experience with devolution, because of the concentration of resources mobilised in the hands of the Centre.

The issue, however, is not one of mere competition for resources between the Centre and the states. Having gained control over the Lok Sabha, the BJP has made it clear that it is keen on establishing an opposition-free political space. To realise this objective, it has not only sought to undermine the legitimacy of individual opposition politicians with charges of corruption or “anti-national” activity, but of opposition-ruled State governments by eroding their ability to adopt economic policy measures and initiatives that could win them political legitimacy. Expenditures on building State infrastructure or social expenditures on subsidised food provision, a modicum of social protection, and employment guarantee schemes, do contribute to winning a party in power in a State a degree of political legitimacy. The attack on the fiscal capacity of the State governments helps limit such expenditures, even while Central claims on expanding infrastructural investments and social sector spending are advanced, with an increase in ‘central’ schemes, especially those attributed to the patronage of the highest authority, the Prime Minister. 

Speaker : 

Prof C P Chandrasekhar

 Prof C. P. Chandrasekhar is emeritus professor at the Centre for Economic Studies and Planning, Jawaharlal Nehru University (JNU), New Delhi. He has published widely in academic journals and is the coauthor of Crisis as Conquest: Learning from East Asia (2021, Orient Longman), When Governments Fail – A Pandemic and Its Aftermath (with Jayati Ghosh et al) , 2021 ; Interpreting the World to Change It – Essays for Prabhat Patnaik (with Jayati Ghosh), 2018 ; After Crisis : Adjustment, Recovery and Fragility in East Asia ( with Jayati Ghosh) 2009 ; The Market that Failed: Neo-Liberal Economic Reforms in India (2002, Leftword Books), and 

 
He received his MA and Ph.D (economics) from Jawaharlal Nehru University, where he served as a professor from 1997 until his retirement. He is a member of the executive committee at International Development Economics Associates (IDEAs) and the World Economics Association, as well as a contributor to Frontline, Economic and Political Weekly, and Businessline.
 
Chandrasekhar received the Malcolm Adiseshaiah Award for 2009 for contributions to economics and development studies.