This article has been written by Ms. Nidhisha Alajangi, a 2nd year BBA LL.B Student from SVKM Narsee Monjee Institute of Management Studies, Bengaluru.
Introduction
In India, cooperative federalism reflects the concept of a stable connection between the centre and other units. It encourages all regulatory entities to come forth and work together to tackle normal cultural, political, economic, and civic issues.
Cooperative Federalism in India: Articles of the Constitution
The authors of the Constitution attempted to achieve synergistic governance by delegating crucial powers and responsibilities to the federal government and the states. Nonetheless, they conferred authority on Parliament’s decision and the Supreme Court’s ruling. As a result, the Centre is given more explicit authorities while maintaining the essence of Cooperative Federalism.
- 7th Schedule
The 7th Schedule of the Indian Constitution split all power between the central, state, and concurrent lists, with the Centre retaining some residual powers. The Indian parliament is authorised to change the subjects on the state list under Article 249(5). To make a change, the resolution must be approved by an in-state council with a 2/3 majority.
- All India Services
All India Services provides a unified judicial system to establish the laws of the Centre and the states. This provision is manifested in Article 312 of the Indian constitution, which focuses on integration under cooperative federalism in India. Article 263 mentions an inter-state council to study elements of common interest between the states and the Centre.
- Full Faith and Credit Clause
Article 261 emphasises complete faith and credit for all Union and state records, public acts, and judicial procedures throughout Indian territory. This process promotes trust and collaboration between the Centre and the states.
- Zonal Council
To facilitate coordination, each zone has five zonal councils: centre, north, south, east, and west. These are established under the State Reorganization Act of 1956, although the northeast zonal council is established under a separate act.
- NITI Aayog
To achieve more cooperative federalism, the Planning Commission was replaced by NITI Aayog. This organisation assists the Centre and the states on the dialogue and cooperation of these two powers.
- GST
The Indian Constitution’s 101st Amendment Act established uniform taxes, known as GST. It is a one-of-a-kind tax imposed directly on consumers by manufacturers in order to achieve the “one nation, one tax” ideal.
Several organisations have attempted and failed to resolve center-state feuds, making cooperative federalism difficult in India. States’ independence in adopting laws, fiscal support from the centre, and power centralization are some approaches to promote Cooperative Federalism.
Challenges to cooperative federalism
Several challenges, such as a lack of trust and dwindling divisible pools, affect Centre-State relations. They make complete cooperation difficult.On the one hand, the Centre has increased the states’ portion of the divisible pool, yet states actually receive a smaller share.For example, according to the 16th FC guidelines, several southern states are losing their share of tax revenues.
The allocation for different social welfare projects has also decreased, harming the health of the states. Inter-state water disputes, like as the Mahadayi issue between Goa and Karnataka, and Mahanadi water issues (Odisha and Chhattisgarh), necessitate cooperation from all parties (centre and riparian states).
Strengthening Federalism
- Strengthening of Inter-State Council:Several committees have advocated strengthening the Interstate Council, where concurrent list items can be debated and discussed, balancing Centre state authorities. Because there is significantly less institutional room to resolve inter-state frictions, a constitutional organisation like the ISC may be a viable option.
- Autonomy to states:The centre should draught model legislation that leave room for states to innovate. To avoid budgetary burdens, the Centre should provide adequate budgetary support to states. There should be as little involvement in state subjects as possible.
- Democratic Decentralization of administration– Thus, in genuine spirit, strengthening governments at all levels. Power should be decentralised according to the subsidiarity concept.
Steps toward Competitive Federalism
- Acceptance of the 14th Finance Commission’s recommendations, in addition to significantly increased devolution (devolution of 42% of the divisible pool to states from 20015-16 to 2019-20, as opposed to the previous commission’s suggestion of 32%), allows states to design and implement programmes better suited to their needs.
- Competitive federalism has not yet been adopted by all states. However, a few states are obviously taking moves to improve their business environments, including challenging reforms on land acquisition and labour flexibility.
- Federalism is no more a schism in Centre-State relations, but rather the definition of a new team India relationship.
- The central government has promised power decentralisation and minimal meddling in state issues. With the implementation of the GST, this federal system is further solidified.
- The government has replaced the Planning Commission with NITI Aayog. One of the NITI Aayog’s mandates is to promote competitive federalism. State governments would not go to the centre for policy recommendations or fiscal resources under it.
- The financial commission recommended that the states’ share of central tax revenue be increased from 32% to 42%.
- States are allowed to arrange their spending according to their own priorities.States would collaborate with the centre to develop a shared vision of national goals.
- Restructuring of government-sponsored programmes.The UDAY concept includes a financial sector bailout package.System of Swachh Bharat Ranking.
- Most states now host investor meetings to exhibit their state’s facilities in order to attract business and investment. This has resulted in a better economic environment in several states.Ease of Doing Business ranking by state to create a strong sense of rivalry.
Way Forward
- Articles 3 and 4 are enabling measures that allow Parliament to act in rare circumstances in their current form. Agreements and proposals of this nature should be established by broad consensus or negotiation.
- Governors should be appointed generously and with the trust of the state government.
- More organisations, such as the National Development Council, the National Integration Council, and the Inter-State Council, should be formed to address issues such as tax devolution, constitution reform, and grants.
- Previously, there were flaws in the application of Article 356. It should be utilised with extreme caution and vigilance, in accordance with the recommendations of the Sarkaria and Punchhi Commissions, as well as other Supreme Court directions.
- States in India have limited authority, and the operation of the Constitution is governed by the federal spirit. However, as a result of global trends, India’s federalism is deepening. States could be given more prudent autonomy.
Conclusion
Federalism is a principle that must be implemented in spirit as well as letter. In this essay, we examined the historical significance of cooperative federalism, and I have some proposals to strengthen it, which are as follows:More institutional reforms are needed to avoid the risk of manipulation by ad hoc political bargaining or by welfare-reducing strategic behaviour by governments at various levels in order for collaborative federalism to operate.
In an era where the party system is fractured along federal lines, there is still a desire to include State parties in federal coalitions, even when it is theoretically unnecessary. The treatment of alliance partners thus becomes a crucial aspect of federal functioning.State legislation should be considered.
REFERENCES-
https://www.niti.gov.in/cooperative-federalism
https://www.jstor.org/stable/41853856
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