Cooperative Federalism
India’s Cooperative Federalism Situation:
Legislative/Administrative:
- Separation of Powers: Schedule 7 of the Constitution outlines a clear division of authority between the federal government and the states. (Except in cases of emergencies, which are subject to judicial review.)
- The Supreme Court has exclusive competence to hear disputes between the states and the Center under Article 131 of the Constitution. Ex: In January 2020, Chhattisgarh filed a petition with the Supreme Court challenging the NIA Act.
- Coalition governments have given states more negotiating leverage.
- Politically, federalism is far more developed than it was in the past with regard to the imposition of President’s authority under Article 356 of the Constitution.
Financial:
- GST Council: The passage of GST is a beautiful example of cooperative federalism, where the States and the Centre have given up their taxing authority and created a single tax structure to accomplish the goal of an unified Economic India with a “One Nation, One Market” policy.
- The state’s share has been steadily rising since the 10th FC and devolved 42% by the 14th FC.
Other Aspects:
- NITI Aayog: The Aayog, which has taken the place of the former Planning Commission, is promoting a bottom-up approach to development planning.
- States are included in Sabka Saath Sabka Vikas as equal development partners. Federalism that is cooperative and competitive is evolving.
Cooperative federalism’s problems:
- Centre-State interactions are hampered by a number of problems, including a lack of confidence and shrinking pools that can be divided. They make complete cooperation challenging as a group.
- On the one hand, the Center has increased the States’ portion of the pool that is divided, but in practise, the States are receiving a smaller portion.
- For instance, many south states are losing their fair share of tax revenue, according to the 16th FC’s recommendations.
- The funding for numerous social welfare programmes has also decreased, which has an impact on the health of the State.
- All parties must work together to resolve interstate water issues, such as the Mahadayi dispute between Goa and Karnataka and the Mahanadi water problems between Odisha and Chhattisgarh (centre and riparian states).
Enhancing the environment of Federalism:
- Strengthening of the Inter-State Council: Over the course of the year, numerous committees have suggested strengthening the Interstate Council, where the topics on the concurrent list can be discussed and debated while balancing the powers of the Centre state. A constitutional organisation like the ISC can be a solution as there is much less institutional room to resolve inter-state conflicts.
- State autonomy: The federal government should create model rules that provide states flexibility. In order to avoid financial strain, the centre should provide sufficient budgetary support to the states. The state subjects should be interfered with as little as possible.
- Democratic administration decentralisation and genuine government strengthening at all levels. On the basis of the subsidiarity concept, power should be decentralised.