Exam View:
Prelims:
Current events of national importance (Federalism, NITI Aayog, off-budget borrowing etc
Mains GS Paper II & III:
Functions and responsibilities of the union and the states, issues and challenges pertaining to the federal structure etc
In News:
Rather than strengthening cooperative federalism, the central government of the day is resorting to policies that make the Indian federation coercive.
Federalism is a system of government where the powers are divided equally between the Centre and its various parts, including provinces and states. Federalism is one of the pillars of the Basic Structure of the Constitution.
The Planning Commission was replaced by NITI Aayog in 2015 with an emphasis on the ‘Bottom –Up’ approach and to achieve Sustainable Development Goals (SDGs). One of the main mandates of NITI Aayog is to foster cooperative federalism through structured support initiatives and mechanisms with the States continuously, recognising that strong States make a strong nation.
Cooperative vs Competitive Federalism:
Constitutional Provisions:
- Article 1: “India, that is Bharat, shall be a Union of States”. While the Constitution doesn’t mention the term “federal”, it does provide for a governance structure primarily federal in nature.
- Articles 245 to 254: The legislative functions of union and states are discussed mainly in Articles 245 to 255 in Part XI of the constitution.
- Article 246 (Seventh Schedule): It demarcates the powers of the Union and the State by classifying their powers into 3 lists. They are: Union List, State List and Concurrent List.
Recommendations of Finance commission rejected by Union Government:
- The Fifteenth Finance Commission report: It recommended a special grant to three States to ensure that the tax devolution in 2020-21 in absolute terms should not be less than the amount of devolution received by these States in 2019-20.
- Recommendation relating to grants for nutrition: amounting to ₹7,735 crore was not accepted.
- The sector-specific grants and State-specific grants: It recommended by the Finance commission for the period 2021-26, have not been accepted.
Impacts of Rejecting Recommendations:
Way Forward:
Different Committees appointed by the Government of India emphasized the need to curtail the number of Centrally Sponsored Schemes (CSS) and restrict them to a few areas of national importance. The Sub-Committee of Chief Ministers appointed by NITI Aayog has recommended a reduction in the number of schemes and the introduction of optional schemes.
The COVID-19 pandemic has taught us that individual efforts are not enough to tackle national exigencies, and there is a constant need to strengthen and renew the cooperative spirit of Indian federalism.
The centre and state should work together in accordance with their constitutional mandates, with greater autonomy for states. After all, a stronger nation results from these stronger states.
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