UPSC MainsESSAY2016125 Marks1000 Words
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Q5.

Cooperative federalism: Myth or reality

How to Approach

This essay requires a nuanced understanding of Indian federalism. The approach should be to define cooperative federalism, trace its evolution, analyze instances demonstrating both cooperation and conflict, and finally, assess whether it remains a myth or has become a reality. The structure will follow a chronological and thematic pattern, examining constitutional provisions, landmark judgments, and recent policy initiatives. Focus should be on providing concrete examples to support arguments.

Model Answer

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Introduction

Cooperative federalism, a concept deeply embedded in the Indian Constitution, envisions a collaborative relationship between the Union and the States, moving beyond a strictly division-of-powers approach. While the Constitution establishes a federal structure with clearly demarcated legislative and administrative powers (Articles 245-251), the inherent flexibility allows for cooperation and coordination. However, the reality of Centre-State relations has often been marked by tensions, particularly concerning financial resources, policy implementation, and political differences. The recent implementation of schemes like the Agnipath scheme and the New Education Policy have again brought the debate on cooperative federalism to the forefront, prompting a re-evaluation of its status – is it a genuine practice or merely a constitutional ideal?

Historical Evolution of Cooperative Federalism

The initial decades after independence witnessed a strong centralizing tendency, often termed as ‘competitive federalism’ or ‘coercive federalism’. This was largely due to nation-building priorities, economic planning, and the dominance of the Congress party. However, the 1990s, with the rise of coalition governments, marked a shift towards greater cooperation. The establishment of institutions like the National Development Council (1952) and the Inter-State Council (Article 263, established in 1990) were attempts to foster collaboration.

Constitutional Provisions Fostering Cooperation

Several constitutional provisions explicitly promote cooperative federalism:

  • Article 263: Establishes the Inter-State Council to promote coordination and resolve disputes.
  • Article 282: Allows the Union to make grants to States.
  • GST Council (Article 279A): A prime example of cooperative federalism, where both the Union and States have equal representation in decision-making regarding Goods and Services Tax.
  • NITI Aayog: Replaced the Planning Commission and emphasizes collaborative governance with States.

Areas of Cooperation

Cooperation is evident in several areas:

  • Financial Transfers: The Finance Commission (established under Article 280) plays a crucial role in recommending the distribution of tax revenues between the Union and States, ensuring fiscal equalization.
  • National Policies: Implementation of national programs like the National Health Mission, Swachh Bharat Abhiyan, and the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) requires active State participation.
  • Security and Law Enforcement: Joint operations against terrorism and Naxalism necessitate close coordination between central and state security forces.
  • Disaster Management: The National Disaster Management Authority (NDMA) works in tandem with State Disaster Management Authorities (SDMAs) for effective disaster preparedness and response.

Areas of Conflict and Challenges

Despite the constitutional framework and instances of cooperation, several challenges persist:

  • Financial Asymmetry: States often complain about inadequate financial resources and excessive dependence on Union transfers. The debate over the devolution of taxes continues.
  • Centralization of Power: The Union government often exercises its powers under the Union List (List I) to enact laws that impact States, leading to concerns about encroachment on State autonomy.
  • Governor’s Role: The role of the Governor as an intermediary between the Union and the State has been a source of friction, particularly during political crises.
  • Policy Differences: Divergent political ideologies and policy priorities between the Union and States can hinder effective implementation of national programs. For example, differing approaches to agricultural reforms have created tensions.
  • Administrative Issues: Delays in obtaining clearances from central ministries and bureaucratic hurdles can impede State-level projects.

Recent Trends and Developments

The last decade has witnessed both positive and negative trends. The GST Council, despite initial hiccups, has largely functioned as a cooperative body. However, the implementation of schemes like the Agnipath scheme without adequate consultation with States and the perceived unilateral actions of the Union government in areas like environmental clearances have raised concerns about the erosion of cooperative federalism. The New Education Policy 2020 also faced criticism for insufficient state consultation.

Aspect Cooperative Trends Conflicting Trends
GST Council Equal representation, consensus-based decision making Occasional disagreements on rates and implementation
Finance Commission Regular recommendations for fiscal devolution States often demand higher devolution percentages
National Schemes State participation in implementation Concerns about central control and funding patterns

Conclusion

Cooperative federalism in India remains a work in progress. While the constitutional framework and institutional mechanisms promote collaboration, the reality is often characterized by tensions and imbalances. The success of cooperative federalism hinges on mutual trust, respect for State autonomy, and a willingness to engage in genuine dialogue. Strengthening the Inter-State Council, ensuring greater financial devolution, and fostering a spirit of collaborative governance are crucial steps towards realizing the full potential of this vital principle. A truly cooperative federal structure is not merely a constitutional provision but a dynamic process requiring continuous negotiation and accommodation.

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

Federalism
A system of government in which power is constitutionally divided between a central authority and constituent political units (states or provinces).
Cooperative Federalism
A concept where the Union and States work together in a spirit of mutual respect and collaboration, rather than operating in a hierarchical or adversarial manner.

Key Statistics

As of 2023-24, the states' share in the divisible pool of central taxes, as recommended by the 15th Finance Commission, is 41%.

Source: Ministry of Finance, Government of India

According to the Reserve Bank of India (RBI), in FY23, the total transfers to state governments constituted approximately 8.7% of the GDP.

Source: RBI Report on State Finances (as of knowledge cutoff)

Examples

NITI Aayog’s role in policy formulation

NITI Aayog actively involves State governments in the formulation of national policies through consultations, workshops, and the development of model laws, demonstrating a cooperative approach to governance.

Frequently Asked Questions

What is the role of the Inter-State Council?

The Inter-State Council, established under Article 263, serves as a platform for Centre-State coordination on matters of common interest, dispute resolution, and policy harmonization.

Topics Covered

PolityGovernanceFederalismCentre-State RelationsConstitutional LawAdministrative Reforms