Model Answer
0 min readIntroduction
Cooperative Federalism, a departure from the traditional ‘dual federalism’ model, emphasizes collaboration and mutual consultation between the Union and State governments. Rooted in India's constitutional framework, it envisions a partnership where both levels of government share power and responsibility. The spirit of Cooperative Federalism was initially implicit but has gained prominence with initiatives like the formation of NITI Aayog (2014) and the implementation of Goods and Services Tax (GST - 2017). However, despite these efforts, the ideal of a truly collaborative federal structure remains elusive due to various challenges that test its efficacy. This answer will examine the concept, trace its evolution, and analyze the hindrances to effective Cooperative Federalism in India.
Defining Cooperative Federalism & Its Constitutional Basis
Cooperative Federalism signifies a shift from ‘dual federalism’ where the Union and States operated with distinct, largely non-overlapping jurisdictions. In cooperative federalism, both levels of government work together to achieve common goals, recognizing their interdependence.
- Constitutional Provisions: Article 248 (exclusive powers of Parliament) and Article 250 (procedure for obtaining the consent of States) are relevant. The Seventy-Third and Seventy-Fourth Constitutional Amendment Acts (1992 & 1993 respectively), which mandated devolution of powers to local bodies, also strengthened federalism.
- Evolution: Initially, a stronger Centre dominated, but post-emergency amendments and judicial pronouncements gradually strengthened state autonomy. The formation of Inter-State Council (ISC) in 1990 was intended to facilitate discussions on inter-state disputes and policy coordination, though its functioning has been sporadic.
Recent Initiatives Promoting Cooperative Federalism
Several initiatives have aimed at bolstering cooperative federalism in recent years:
NITI Aayog
- Purpose: Replaced the Planning Commission, focusing on policy advocacy, data-driven decision making, and fostering collaboration between Centre and States.
- Functions: Develops strategic and long-term frameworks for economic and social development; monitors and evaluates policy implementation; provides a platform for dialogue.
- Significance: A landmark indirect tax reform, GST aimed to create a unified national market by subsuming multiple central and state taxes. It necessitated significant coordination between the Centre and States through the GST Council.
- GST Council: A constitutional body comprising representatives from both Union and State governments, responsible for making recommendations on GST rates, rules, and procedures. This is arguably the most successful example of cooperative federalism in practice.
- Asymmetry in Power: The Centre’s financial and legislative dominance often overshadows state interests, leading to perceived imbalances.
- Partisan Politics: Political differences between ruling parties at the Centre and States can hinder consensus-building and collaborative decision-making. For example, differing views on issues like agricultural reforms or environmental regulations have led to conflicts.
- Centralizing Tendencies: Sometimes, the Union government's actions—such as imposing centrally sponsored schemes with limited state discretion—are seen as undermining state autonomy.
- Fiscal Imbalances: Uneven distribution of resources and revenue between the Centre and States creates disparities and resentment. The 15th Finance Commission (2020-25) attempted to address this but continues to be a source of contention regarding devolution percentages.
- GST Compensation Cess Issues: The cessation of GST compensation to states in 2023 has created significant revenue shortfalls for many states, impacting their ability to fund essential services and development programs.
- Lack of Capacity: Some States lack the administrative capacity to effectively implement central government schemes or participate meaningfully in inter-governmental forums.
- Information Asymmetry: Unequal access to information and data can hinder informed decision-making and collaborative policy formulation.
- Bureaucratic Impediments: Differences in bureaucratic practices and procedures between the Centre and States can create delays and inefficiencies in implementation.
Goods and Services Tax (GST)
Challenges to Cooperative Federalism
Despite these efforts, several challenges impede the realization of true Cooperative Federalism.
Political Challenges
Economic Challenges
Administrative Challenges
Table: Comparison of Dual vs Cooperative Federalism
| Feature | Dual Federalism (Traditional) | Cooperative Federalism |
|---|---|---|
| Relationship | Distinct, separate spheres of power. | Collaboration and mutual consultation. |
| Centre-State Power Dynamic | Dominance by the Centre. | More balanced; shared responsibility. |
| Focus | Maintaining separation of powers. | Achieving common goals through cooperation. |
| Examples | Early Indian federal structure. | GST Council, NITI Aayog initiatives. |
Conclusion
Cooperative Federalism remains a vital principle for India’s governance, fostering collaboration and shared responsibility. While initiatives like NITI Aayog and GST have demonstrated its potential, persistent challenges—political imbalances, fiscal disparities, and administrative bottlenecks—require sustained attention. Strengthening the Inter-State Council, enhancing states' financial autonomy, and promoting capacity building are crucial steps towards realizing the full promise of Cooperative Federalism for a more equitable and efficient nation.
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.