UPSC MainsPUBLIC-ADMINISTRATION-PAPER-II201130 Marks
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Q7.

Indian federalism is passing through a state of potential maturity." Discuss this statement in the context of the views of the Commission on Centre-State Relations (Justice M. M. Punchi).

How to Approach

This question requires a nuanced understanding of Indian federalism and the recommendations of the Punchhi Commission. The answer should begin by defining Indian federalism and outlining its historical evolution. Then, it should delve into the key observations of the Punchhi Commission regarding Centre-State relations, categorizing them into areas of conflict and cooperation. Finally, it should assess whether the current state of Indian federalism reflects a move towards maturity, considering recent developments and challenges. A balanced approach acknowledging both positive trends and persisting issues is crucial.

Model Answer

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Introduction

Indian federalism, as enshrined in the Constitution, is a unique blend of federal and unitary features, often described as ‘quasi-federal’. While the Constitution clearly demarcates powers between the Centre and the States, the Centre enjoys significant advantages, leading to a historically asymmetrical relationship. The Commission on Centre-State Relations, headed by Justice M.M. Punchi (2007-2010), was constituted to examine the safeguards available under the Constitution and recommend changes. The assertion that Indian federalism is “passing through a state of potential maturity” necessitates an examination of the Punchi Commission’s recommendations and their subsequent implementation, alongside contemporary trends in Centre-State dynamics.

Understanding the Punchhi Commission’s Observations

The Punchhi Commission identified several areas of friction and potential for improvement in Centre-State relations. Its recommendations can be broadly categorized as follows:

Areas of Conflict Highlighted by the Commission:

  • Financial Imbalance: The Commission noted the significant financial dependence of states on the Centre, particularly through tax devolution and grants-in-aid. It advocated for greater fiscal autonomy for states.
  • Article 356 (President’s Rule): The Commission expressed concern over the frequent invocation of Article 356, arguing it undermined federal principles. It recommended stricter guidelines for its use and a constitutional amendment to limit its scope.
  • Governor’s Role: The Commission criticized the Governor’s role as an agent of the Centre, advocating for a more neutral and impartial position. It suggested consultations with Chief Ministers before appointments and a clear definition of the Governor’s functions.
  • All India Services (AIS): The Commission acknowledged the importance of AIS officers but highlighted issues related to their accountability and responsiveness to state governments.

Recommendations for Strengthening Federalism:

  • Financial Devolution: The Commission recommended increasing the states’ share in the divisible pool of taxes and rationalizing the criteria for devolution.
  • Inter-State Council: Strengthening the Inter-State Council (established under Article 263) to serve as a platform for resolving disputes and promoting coordination between states.
  • National Integration Council: Revitalizing the National Integration Council to address issues of national unity and harmony.
  • Constitutional Amendment: A comprehensive constitutional amendment to address various issues related to Centre-State relations, including Article 356 and the Governor’s role.

Assessing the ‘Potential Maturity’ of Indian Federalism

Several developments suggest a move towards greater maturity in Indian federalism, although challenges remain.

Positive Trends:

  • Increased Fiscal Devolution: The 14th and 15th Finance Commissions (2015 & 2020 respectively) significantly increased the states’ share in the divisible pool of taxes, enhancing their financial autonomy. The 15th Finance Commission recommended a share of 41% (reduced from 42% due to the creation of Union Territories of Jammu & Kashmir and Ladakh), a substantial improvement over previous commissions.
  • Cooperative Federalism: The Modi government has often espoused the principle of ‘cooperative federalism’, emphasizing collaboration and consensus-building with states. Initiatives like ‘NITI Aayog’ aim to foster a more collaborative approach to policy-making.
  • GST Council: The Goods and Services Tax (GST) Council, a constitutional body, exemplifies cooperative federalism by providing a platform for states to participate in decision-making regarding indirect taxation.
  • Greater State Autonomy in Policy Areas: States have demonstrated increasing autonomy in areas like education, health, and agriculture, tailoring policies to their specific needs and contexts.

Persistent Challenges:

  • Centralizing Tendencies: Despite the rhetoric of cooperative federalism, concerns remain about the Centre’s tendency to centralize power, particularly through the use of centrally sponsored schemes and the imposition of uniform policies.
  • Governor-State Relations: The role of Governors continues to be a source of friction, with accusations of partisan behavior and interference in state affairs.
  • Inter-State Disputes: Disputes over water sharing, boundary demarcation, and other issues continue to plague Centre-State relations.
  • Financial Dependence: Despite increased devolution, states remain financially dependent on the Centre, limiting their ability to pursue independent fiscal policies.

Recent Examples:

The handling of the COVID-19 pandemic highlighted both the strengths and weaknesses of Indian federalism. While states took the lead in implementing lockdown measures and managing the healthcare crisis, there were instances of coordination failures and disputes over resource allocation. Similarly, the implementation of the Agnipath scheme saw varied responses from different states, reflecting their concerns about recruitment and security.

Aspect of Federalism Punchhi Commission Recommendation Current Status (as of 2024)
Fiscal Devolution Increase states’ share in divisible pool Increased significantly through 14th & 15th Finance Commissions
Article 356 Stricter guidelines & constitutional amendment Invocation reduced, but concerns about misuse persist
Governor’s Role Neutral & impartial role, consultation with CMs Continues to be a contentious issue, partisan appointments

Conclusion

Indian federalism is undoubtedly evolving, and the trends suggest a potential move towards maturity. The increased fiscal devolution, the functioning of the GST Council, and the emphasis on cooperative federalism are positive indicators. However, persistent challenges related to centralizing tendencies, Governor-State relations, and inter-state disputes necessitate continued efforts to strengthen the federal structure. Full implementation of the Punchhi Commission’s recommendations, coupled with a genuine commitment to cooperative federalism, is crucial for realizing the full potential of Indian federalism and ensuring a more balanced and harmonious relationship between the Centre and the States.

Answer Length

This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.

Additional Resources

Key Definitions

Quasi-Federalism
A system of government that exhibits characteristics of both federal and unitary systems. India’s Constitution, while establishing a federal structure, grants significant powers to the Centre, making it a ‘quasi-federal’ state.
Centrally Sponsored Schemes (CSS)
Schemes funded by the central government but implemented by state governments. While intended to promote national priorities, they can sometimes lead to states feeling constrained by central directives.

Key Statistics

The share of states in the divisible pool of taxes was increased from 32% to 42% by the 14th Finance Commission (2015).

Source: 14th Finance Commission Report

As of 2023, there are over 200 Centrally Sponsored Schemes operating in India.

Source: Ministry of Finance, Government of India (Knowledge Cutoff: 2024)

Examples

NITI Aayog

Established in 2015, NITI Aayog (National Institution for Transforming India) is a policy think tank that aims to foster cooperative federalism by involving states in the formulation of national policies and development strategies.

Frequently Asked Questions

What is the significance of the Inter-State Council?

The Inter-State Council, established under Article 263, serves as a platform for Centre-State consultations on matters of common interest, promoting coordination and resolving disputes. Its effective functioning is crucial for strengthening federalism.

Topics Covered

PolityGovernanceFederalismCentre-State RelationsConstitutional Law