In contemporary discourse, the concept of cooperative federalism has emerged as a focal point, garnering increased attention and emphasis in recent years. The existing federal structure, characterized by a division of powers between the central and state governments, has encountered certain drawbacks that have prompted a reevaluation of the traditional approach. One significant limitation lies in the potential for intergovernmental conflicts and jurisdictional disputes, often hindering effective policy implementation and coordination. The rigid delineation of powers has sometimes led to inefficiencies and delays in addressing pressing issues, thereby impeding the nation’s overall progress. Cooperative federalism, as a proposed solution, seeks to mitigate these shortcomings by fostering a collaborative and harmonious relationship between the different tiers of government. By promoting shared responsibilities and joint decision-making, cooperative federalism aims to enhance policy coherence and responsiveness to the diverse needs of a complex and dynamic society. This shift towards a more collaborative approach is envisioned to streamline governance processes, encourage flexibility, and foster a synergistic alignment of resources and efforts. Consequently, the exploration and adoption of cooperative federalism present an avenue to address the deficiencies in the current federal structure, offering the potential for a more agile and responsive governance framework.
Tag: Functions and responsibilities of the Union and the States, issues, and challenges pertaining to the federal structure.
Decoding the Question:
- In the Introduction, try to define Cooperative federalism and India’s federal structure.
- In Body, examine the drawbacks in the existing structure and mention the extent to which cooperative federalism would answer these drawbacks.
- In Conclusion, can write the overall significance of cooperative federalism.
Answer:
Cooperative federalism is the concept that reflects the relationship between the center and state where they both come together and resolve common problems with each other’s cooperation.
In a vast country like India, the spirit of cooperative federalism should guide the relations between the Union Government and States on the one hand, among different States and between the States and the Panchayati Raj Institutions (PRIs) and the Urban Local Bodies (ULBs) on the other.
State of Cooperative Federalism in India:
Legislative/Administrative:
- Separation of Power: Schedule 7 of the Constitution provides a strict delineation of powers between center and state. (Except during emergencies which come under judicial review)
- Article 131 of the Constitution, gives the Supreme Court exclusive jurisdiction to hear cases between states and the Centre. Ex: Chhattisgarh moved SC against the NIA Act in Jan 2020
- Coalition governments: It has increased states’ bargaining power.
Political: About the imposition of the President’s rule under Article 356 of the Constitution, federalism is far more mature than it was earlier.
Financial:
- GST Council: The passing of GST is a shining example of cooperative federalism where States and centers have ceded their power to tax and come up with a single tax system to realize the dream of one Economic India with ‘One Nation, One Market’.
- Since the 10th FC, the state’s share has been continuously increasing till the 14th FC by devolving 42%.
Other Areas:
- NITI Aayog: Replacing the erstwhile Planning Commission, the Aayog is promoting a bottom-up approach to development planning.
- Sabka Saath Sabka Vikas involves states as equal partners of development. There is a move towards competitive and cooperative federalism.
Drawbacks in the Existing Structure:
- The division of powers is in favor of the Union Government and highly inequitable from the federal angle. The Union List contains more subjects than the State List. The more important subjects are included in the Union List. The Union Government has overriding authority over the Concurrent List. The residuary powers have also been left with the Union Government. Thus, the Constitution has made the Centre very strong.
- The states in India have no right to territorial integrity, the Parliament can, by unilateral action, change the area, boundaries, or name of any State; unlike in other federations.
- No equality of State representation The states are given representation in the Rajya Sabha based on population. Hence, the membership varies from 1 to 31.
- Some recent developments during the COVID-19 pandemic 2020 have revealed fissures in Union Government-State cooperation. For instance, the zone classifications into ‘red’ and ‘orange’ have evoked sharp criticisms from several States. The States have demanded more autonomy in making such classifications.
- The Union Government has also declared that corporations donating to PM-CARES can avail CSR exemptions, but those donating towards any Chief Minister’s Relief Fund cannot. This directly disincentivizes donations to any Chief Minister’s Relief Fund.
Cooperative Federalism as an Answer for the Existing Structure:
- Indian Constitution is federal in form and is marked by the traditional characteristics of a federal system, namely, the supremacy of the Constitution, division of power between the Union Government and the State Governments, the existence of an independent judiciary, and a rigid procedure for amendment of the constitution.
- Decentralization in administration is the core objective of Cooperative federalism, and power is divided between the Union and the states, but by the 73rd and 74th Constitutional Amendments, another level has been created viz., Panchayats and Municipalities.
- The centralized Planning Commission was replaced by the NITI Aayog, which the Union government assured would have “active involvement of the states in the spirit of “co-operative” federalism.
- The Goods and Services Tax (GST), by which the Union and states would “become equal fiscal partners in sharing a common indirect tax base,” was implemented.
- The Union government accepted the 14th Finance Commission recommendation to give the states a 42 percent share of the funds from the central pool (from the previous 32 percent).
- The most important moment for “cooperative federalism” recently is the revelation of the vital role of state governments on the ground in managing the COVID-19 crisis.
Strengthening Federalism:
- Strengthening of Inter-State Council: Over the years multiple committees have recommended strengthening of the Interstate Council where the concurrent list subjects can be debated and discussed, balancing Centre state powers. There is far less institutional space to settle inter-state frictions therefore a constitutional institution like ISC can be a way forward.
- Autonomy to states: The Centre should form model laws with enough space for states to maneuver. The Centre should give enough budgetary support to states to avoid budgetary burden. There should be the least interference in the state subjects.
- Democratic Decentralization of administration and strengthening governments at all levels in true spirit. Power should be decentralized based on the principle of subsidiarity.
Co-operative federalism makes it possible to raise all the available resources by the Government at different levels in a coordinated way and channel them for use for the common good of the people. This requires a harmonious relationship and cooperative spirit between the Union and the States and among the States themselves. In a recent example, for a country with extraordinary diversity, India’s ability to fight the Covid-19 pandemic at the initial stage largely rested on its Centre-State relation. When compared with other large federal countries such as the US, the country has done very well to minimize the friction and provide a sense of direction to the states.
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