Kerala’s Pause on PM-SHRI: A Test of Federalism and Fiscal Cooperation

Context:
• Kerala has halted implementation of the PM-SHRI school scheme amid internal disagreements within the LDF government, and tensions with the Centre over NEP-2020 compliance and withheld Samagra Shiksha funds.
• The issue has sparked a broader debate on cooperative federalism, state autonomy, and conditional central funding.

Key Highlights

  1. PM-SHRI Scheme Background
  • Kerala initially agreed to join the PM SHRI scheme, intended to upgrade 14,500 schools nationwide as NEP-2020 model institutions.
    • Kerala, Tamil Nadu, and West Bengal have historically opposed NEP-2020, citing centralisation and ideological bias.
  1. Halt After LDF Internal Strife
  • Implementation paused due to lack of full Cabinet approval within the Kerala LDF government.
    • CPI and CPI(M) differ on whether PM SHRI implies forced NEP compliance.
  1. Allegation of Fiscal Pressure
  • Centre accused of withholding Samagra Shiksha (SS) funds to push NEP adoption.
    • Led to salary arrears for teachers and financial strain in Kerala’s school system.

Significance

  1. Why Kerala Resists NEP-2020 Provisions
  • Kerala’s education parameters—enrolment, retention, learning outcomes—already exceed national standards.
    • NEP-2020 targets seen as redundant for the state.
    • PM SHRI may require adoption of:
    Indian Knowledge Systems (IKS)
    – Revised curricula
    – New pedagogical norms
    • Some policymakers view IKS integration as non-scientific or ideologically driven.
  1. Fiscal Federalism Issue: Withholding of Funds
  • SS scheme—Kerala’s main source of federal education funding—was reportedly withheld.
    • This prompted Kerala to initially join PM SHRI to unlock funds.
  1. Political Positioning Within LDF
  • CPI(M) first justified signing the scheme to restore funds.
    • Growing concerns about forced NEP alignment triggered a pause.
  1. Legal & Constitutional Dimensions
  • Article criticises use of fund withholding as coercive federalism.
    • Suggests Kerala should consider litigation, following Tamil Nadu’s approach, to secure constitutionally due funds.
    • Courts are urged to uphold cooperative federalism, restrain executive overreach, and ensure schemes do not bypass state autonomy.

Prelims-Oriented Points (Most Important)

  • PM SHRI
    Mains-Oriented Analysis

GS-2: Polity & Governance | Federalism

  1. Centre–State Tussle Over Education Policy
    • Education is in the Concurrent List → both Centre & States legislate.
    • PM SHRI implementation raises questions of:
    – Administrative control
    – Curriculum autonomy
    – Fiscal dependency on central schemes
  2. Fiscal Federalism Concerns
    • Withholding SS funds to push NEP compliance blurs lines between:
    – Incentive
    – Coercion
    • Impacts the ability of states to run essential public services like schooling.
  3. Federal Balance & State Autonomy
    • Kerala argues PM SHRI may dilute its distinct educational strengths.
    • Imposition of centrally designed curricula undermines pluralism in education models.
  4. Judicial Role in Cooperative Federalism
    • Courts increasingly expected to check:
    – Arbitrary fund withholding
    – Excessive centralisation
    – Violations of equitable federal principles
    • Ensuring fiscal fairness is key to sustaining trust in Centre–State relations.
  5. Broader Implications
    • Raises debate on how centrally-sponsored schemes affect state policy independence.
    • Highlights need for transparent fund-release mechanisms not linked to ideological alignment.

 

 

 

 

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