Centre–State Relations & Education Funding Debate

CENTRE–STATE RELATIONS & EDUCATION FUNDING DEBATE

Kerala signed the PM SHRI school scheme MoU, linked to the National Education Policy (NEP) 2020, but later put it on hold after internal political disagreement. The issue reopened debate on federalism, autonomy in education policy, and conditional central funding.

Background

  • Education is a Concurrent List subject (both Centre & States have powers).
  • Kerala, Tamil Nadu, and West Bengal have opposed NEP 2020, citing attempts to centralise education and possible ideological influence.
  • PM SHRI: Scheme to develop 14,500 model schools aligned to NEP 2020.

Kerala’s Move

  • Kerala unexpectedly agreed to join PM SHRI to access Centre’s education funds.
  • Decision triggered political conflict inside the ruling LDF.
  • CPI demanded withdrawal; CPI(M) said it was necessary to get withheld funds under Samagra Shiksha.

Temporary Suspension

  • Scheme implementation paused.
  • Cabinet sub-committee formed to study MoU.
  • State to inform Centre about suspension.

Federalism & Fiscal Pressure

  • States argue Centre uses funding as leverage to enforce policy alignment.
  • Samagra Shiksha funds withheld for States rejecting NEP → pressure tactic.

State Autonomy in Education

  • Kerala, TN, WB claim NEP undermines State curriculum authority.
  • Fear of central ideological content and “Indian Knowledge Systems” leading to pseudoscience concerns.

Kerala’s High Education Standards

  • Already strong indicators → high enrolment, retention, learning results.
  • PM SHRI seen as branding exercise, not necessity.
  • Joining forces Kerala to align with NEP norms unnecessarily.

Legal & Constitutional Concerns

  • Tamil Nadu moved Supreme Court over fund freeze.
  • Judiciary expected to safeguard cooperative federalism.
  • Kerala may also explore legal route.

Significance

  • Tests balance between Union authority & State rights.
  • Highlights fiscal federalism gap—States depend on Centre for key schemes.
  • Raises concern of policy centralisation in social sector governance.

Way Forward

  • Strengthen cooperative federalism & transparent fund-sharing.
  • Dialogue between Centre and States instead of compulsion.
  • Judicial clarity on conditional central funding in Concurrent subjects.

Conclusion:

The Kerala–PM SHRI episode reflects growing tension between State autonomy and centralised policy enforcement. Federalism must not be weakened by financial conditions — States deserve equitable access to funds without compromising their constitutional space.

This topic is available in detail on our main website.

👉 Read Daily Current Affairs – 30th October 2025

Leave a Reply

Your email address will not be published. Required fields are marked *