PM SHRI Scheme Implementation and Fiscal Federalism Issues
Source:Indian Express ↗
Why It Matters
The article serves as a perfect case study for GS Paper 2 topics such as Centre-State relations, the functioning of federalism, and the complexities of policy implementation in Concurrent List subjects. It specifically illustrates how conditional central funding (like tying Samagra Shiksha funds to PM-SHRI adoption) impacts state autonomy.
Summary
The Union Education Ministry is making a renewed push to bring West Bengal, Kerala, and Tamil Nadu on board with the PM-SHRI (PM Schools for Rising India) scheme, leveraging the shifting political landscapes after recent state assembly elections. Previously, these states resisted the scheme—West Bengal objected to the "PM" prefix, while Kerala and Tamil Nadu opposed certain provisions of the National Education Policy (NEP) 2020, such as the three-language formula. The Centre's strategy of withholding Samagra Shiksha funds to compel compliance has sparked critical debates over fiscal federalism and the autonomy of states in managing education, which falls under the Concurrent List.
Key Points
- The Union Education Ministry is launching a renewed effort to persuade West Bengal, Kerala, and Tamil Nadu to adopt the PM-SHRI scheme following recent state assembly elections.
- The PM-SHRI scheme aims to upgrade 14,500 schools nationwide to act as exemplar models for implementing the National Education Policy (NEP) 2020.
- Opposition to the scheme stems from West Bengal's objection to the 'PM' prefix, and Kerala and Tamil Nadu's disagreement with NEP 2020 provisions like the three-language formula.
- The Centre's approach of tying Samagra Shiksha grants to the adoption of the PM-SHRI scheme has raised significant concerns regarding cooperative federalism and the misuse of fiscal leverage.
- The issue underscores the continuous friction in Centre-State relations when implementing centrally sponsored schemes in subjects under the Concurrent List, such as education.
Important Terms
PM-SHRI Scheme
A Centrally Sponsored Scheme launched in 2022 to upgrade 14,500 schools into "exemplar" institutions that showcase National Education Policy (NEP) 2020 features, focusing on modern infrastructure and holistic pedagogy.
UPSC context
GS Paper II/III: Government policies and education. Tests knowledge of model school initiatives and NEP 2020 implementation strategies.
Samagra Shiksha Scheme
An overarching Centrally Sponsored Scheme (launched 2018) covering pre-school to class 12. It subsumes three erstwhile schemes: Sarva Shiksha Abhiyan, Rashtriya Madhyamik Shiksha Abhiyan, and Teacher Education.
UPSC context
GS Paper II: Social Justice/Education. Tests understanding of integrated school education frameworks and Centre-State funding dynamics (60:40 ratio).
National Education Policy (NEP) 2020
India’s first 21st-century education policy, replacing the 1986 policy. It introduces a 5+3+3+4 curricular structure, prioritizes foundational literacy, and aims for universal access from pre-primary to secondary level by 2030.
UPSC context
GS Paper II: Issues relating to Education. Vital for analyzing systemic reforms and their impact on India's human capital.
Concurrent List
The list under the Seventh Schedule (List III) where both the Union and States can legislate. Education was moved here from the State List via the 42nd Amendment Act, 1976.
UPSC context
GS Paper II: Federal Structure. Essential for understanding legislative overlap, the Doctrine of Repugnancy, and Centre-State policy friction.
Fiscal Federalism
The distribution of financial powers and responsibilities between the Union and States. It includes tax devolution and grants (Statutory vs. Discretionary) to manage the vertical and horizontal fiscal imbalances.
UPSC context
GS Paper II: Centre-State Relations. Tests understanding of financial autonomy versus central influence through performance-linked grants.
Cooperative Federalism
A federal model where the Union and States act as partners to address national challenges, relying on consensus-building mechanisms like the GST Council or Inter-State Council for policy implementation.
UPSC context
GS Paper II: Federalism. Tests the ability to critique the balance between national uniformity and regional autonomy in a diverse democracy.
Prelims Trap
PM-SHRI is a Central Sector Scheme fully funded by the Union Government to upgrade 14,500 schools.
PM-SHRI is a Centrally Sponsored Scheme (CSS) featuring a 60:40 cost-sharing ratio (90:10 for special category states) between the Centre and States, not 100% Union-funded.
Static Concepts Connected
How does the Constitution resolve Centre-State legislative conflicts over Education?
- Concurrent List: Education was moved to Entry 25 of the Concurrent List (List III) from the State List by the 42nd Constitutional Amendment Act, 1976.
- Article 254: Under the Doctrine of Repugnancy (Article 254), Central laws prevail over State laws on Concurrent subjects unless the State law receives explicit Presidential assent.
What differentiates Centrally Sponsored Schemes (CSS) from Central Sector Schemes?
- Funding Pattern: CSS are jointly funded by the Centre and States (e.g., 60:40), whereas Central Sector Schemes are 100% funded by the Union government.
- Implementation: CSS are generally implemented by State governments, while Central Sector Schemes are executed directly by Central machinery or agencies.
Cross-Topic Patterns
Tied Grants and Fiscal Coercion
Withholding Samagra Shiksha funds to enforce PM-SHRI mirrors recent frictions over MGNREGA and NHM, highlighting the Centre's increasing use of tied CSS grants to enforce federal mandates.
Language Policy vs Federalism
State resistance to the NEP's three-language formula links to post-independence linguistic state reorganization and the protection of cultural/linguistic rights under Article 29.
Expect a multi-statement Prelims question linking the 42nd Amendment (Education) with CSS fund-sharing mechanisms and Article 254.
Linked PYQs · 4
Linked PYQs · 4
- 2020MainsGS2
National Education Policy 2020 is in conformity with the Sustainable Development Goal-4 (2030). It intends to restructure and reorient education system in India. Critically examine the statement.
- 2022MainsGS2
The Right of Children to Free and Compulsory Education Act, 2009 remains inadequate in promoting incentive-based system for children's education without generating awareness about the importance of schooling. Analyse.
- 2024MainsGS2
What changes has the Union Government recently introduced in the domain of Centre-State relations ? Suggest measures to be adopted to build the trust between the Centre and the States and for strengthening federalism.
- 2025MainsGS2
Examine the evolving pattern of Centre-State financial relations in the context of planned development in India. How far have the recent reforms impacted the fiscal federalism in India?
