COOPERATIVE FEDERALSIM
Competitive Cooperative Federalism is the Key to India's Rising
Investments. – Narendra Modi
What is cooperative federalism?
Cooperative federalism is a concept of federalism in which national,
state, and local governments increasingly interact cooperatively and
collectively to solve common problems.
The Indian model of federalism is predominantly ‘cooperative’ as
laid down by the Supreme Court in State of Rajasthan v. Union of
India,1977.
The most essential precondition for the effective functioning of
cooperative federalism is robust institutions and mechanisms for
promoting intergovernmental relations.
The Constitution of India does not explicitly contain the phrase
‘cooperative federalism,’ but the functioning of the Constitution
implicitly resulted in ‘cooperative federalism.’
While India does not entirely mimic a pure federal system, it follows
a quasi-federal system of governance. And for a smooth functioning
federation, there needs to be cooperation and collaboration
between the federal units.
Sarkaria Commission Report (1988) on Centre-state relations stated
that by the middle of the twentieth century, federalism had come to
be understood as a dynamic process of cooperation and shared
action between two or more levels of government.
What is the need for cooperative federalism in India?
India takes pride in describing itself as the world’s largest
democracy, and this democracy is significantly meaningful because
it is encapsulated in a federal structure.
Promoting social justice: While democracy represents the majority
opinion, federalism accommodates and links it to the voice of the
minority, lending a flavor of social justice.
Ensuring accommodation: Cooperative Federalism, along with
cultural and ethnic pluralism, has given the country’s political
system great flexibility and, therefore, the capacity to withstand
stress through accommodation.
Ensuring stability and growth: In the turbulent circumstances
prevailing at that time and in the wake of India’s partition, only a
cooperative federal setup could ensure the needs of security,
defense, urge for a welfare state, and meeting the situation of
economic crisis.
Contemporary issues: Also, the current trends ( like Covid-19)
emphasize cooperation and coordination rather than the
demarcation of powers between different levels of government.
What are the constitutional provisions which uphold the spirit of
cooperative federalism?
Article 54 - Representation of states in the President’s election
where the members of legislative assemblies are part of the
Electoral college.
Article 80 - Provides for the Council of States, representing states in
the union legislative process.
Article 246, read with Schedule VII It demarcates the subject
matters upon which the Centre and states may enact laws.
For the matters listed in the Concurrent List, the Centre and the state may
legislate.
Article 262 - It allows the Parliament to adjudicate inter-state water
disputes. Further, In T.N. Cauvery Sangam v. Union of India(1990),
the Supreme Court clarified that the Parliament could appoint a
Tribunal for such adjudication.
Article 263 - It provides for the establishment of Inter-State Councils,
which are empowered to investigate those matters that interest
both the Centre and states.
What are the recent measures to promote cooperative federalism in
India?
In recent years, several measures have been taken by the Indian
government to promote cooperative federalism. Here are some examples:
NITI Aayog:
NITI Aayog has been constituted to actualize the important goal
of cooperative federalism and to enable good governance in India.
Niti Aayog’s Governing Council comprises Chief Ministers of states
and Administrators or Lieutenant Governors of Union Territories.
NITI Aayog acts as the quintessential platform for the Government
of India by bringing States together as ‘Team India’ to work towards
the national development agenda.
It also established models and programmes for the development of
infrastructure and to reignite and establish private-public
partnership, such as the Centre-state
partnership model Development Support Services to States and
Union Territories (DSSS) and the Sustainable Action for Transforming
Human Capital (SATH) programme.
Other initiatives include Policy support and capacity development of
State/UT functionaries and Launching of the Aspirational Districts
Programme for development of backward districts.
Goods and Services Tax (GST):
The introduction of the GST in 2017 is considered one of the most
significant steps towards promoting cooperative federalism in India.
It is a unified tax system that replaced various state-level taxes,
creating a common market across the country.
The GST Council, consisting of representatives from the central and
state governments, is responsible for making decisions related to
the tax system.
This has ensured a high degree of collaboration and
cooperation between the central and state governments.
Centrally Sponsored Schemes:
Centrally Sponsored Schemes (CSS) are initiatives implemented by
the central government in partnership with the state governments.
Under CSS, the central government provides a significant portion of
the funding for the scheme, while the state government is required
to contribute the rest.
The central government also provides guidelines and standards for
the implementation of the scheme, while the state government has
the flexibility to adapt the scheme to local needs and priorities.
According to a report by the Ministry of Finance, there are
currently 28 CSS in operation, covering a wide range of areas,
including rural development, education, health, and skill
development.
What are the factors that hinder cooperative federalism?
Over-centralization: The Centre enjoys more power than the states,
and the most important subjects of the country are listed in the
Union List. This often results in conflicts of interest between the
Centre and states, as the Centre imposes rules and regulations that
many states find discriminatory. For example:
Article 356 related to the imposition of the President’s Rule in a state
which is frequently prone to misuse by the Centre.
Limitations of Inter-state Council: While Article 263 allows the Inter-
State Council to make recommendations, It does not empower it
to enforce or implement them.
Regionalism: A strong feeling of regionalism makes it difficult for the
Government to ensure cooperation because regionalism gives rise
to secessionist forces, which threaten the very existence and
identity of the country.
Uniform approach: The Centre, while framing policies, fails to take
into account the heterogeneity of India. The one size fits all
approach doesn’t work in a diverse country like India. This makes
cooperation between the centre and the state very difficult.
Fiscal federalism: One of the major challenges is the unequal
distribution of financial resources between the Centre and states.
The lack of adequate financial resources can hamper the ability of
states to deliver essential services and implement development
programs.
Administrative challenges: This includes issues such as inadequate
staffing and training, lack of communication and coordination, and
bureaucratic red tape.
What steps could help promote cooperative federalism in India?
Sarkaria and Punchhi Commission
The Sarkaria Commission(1987) and Punchhi Commission(2010) gave
several recommendations to cultivate cooperative federalism and
suggested actionable steps. Some of them include
The office of the Governor should be apolitical, and the terms of his
removal should be altered.
Restricting the use of the President’s rule under Article 356 to
prevent excessive misuse by the Centre.
Extending the mandate of the Inter-State Council beyond advice and
recommendations.
Laying down guidelines to prevent misuse of the President’s veto of
the legislation.
Including states when the Centre enters into any international
agreements.
General recommendations
Strengthening Inter-Governmental mechanisms: Utilizing the
constitutional and statutory institutions set up adequately to resolve
the conflicts between the union and the state government and
further the welfare of the people.
Promoting fiscal federalism: Promoting fiscal federalism can help in
promoting greater fiscal autonomy for state governments, which can
in turn help in promoting greater coordination and cooperation
between the central government and state governments.
Strengthening institutional frameworks: This can be achieved by
enhancing the role of institutions such as the NITI Aayog, the Inter-
State Council, and the Finance Commission.
Regular Inter-Governmental meetings: Regular meetings between
the central government and the state governments can help in
sharing information, discussing issues of mutual concern, and
arriving at a consensus on policy matters.
Avoiding the ‘One size fits all’ approach: This is crucial for promoting
cooperative federalism because it recognizes the diversity of the
States in terms of their socio-economic, political, and cultural
contexts.
Empowering local governments: Empowering local governments can
help promote cooperative federalism by giving them greater
decision-making powers and financial resources.
Covid-19 pandemic has also highlighted the importance of cooperative
federalism. The management of the pandemic required close coordination
between the central and state governments. While there were instances
of friction, particularly over issues such as vaccine distribution and
lockdown measures, the crisis underscored the need for a collaborative
approach to tackle challenges of national significance.
Political dynamics play a crucial role in shaping the practice of
cooperative federalism in India. The nature of centre-state relations often
depends on the political alignment of the ruling parties at the centre and
in the states. When the same party or a coalition of parties governs both
the centre and the states, there is typically more cooperation. However,
when different parties are in power, particularly if they are ideological
rivals, tensions can arise, leading to a more confrontational relationship.
The judiciary has also played a crucial role in resolving disputes between
states and the centre, as well as between states themselves. The
establishment of mechanisms such as the Inter-State River Water
Disputes Tribunal is an example of the judiciary's role in promoting
cooperative federalism by providing a platform for dialogue and resolution
of conflicts.
The current political landscape, with the dominance of the single party at
the centre and its growing influence in various states, has brought its own
set of challenges and opportunities for cooperative federalism. While the
central government has pushed for reforms that require state
cooperation, such as the implementation of GST and labour law
reforms, there have also been instances of conflict with opposition-
ruled states, particularly on issues such as the handling of
the pandemic and agricultural laws.
CONCLUSION
The journey of cooperative federalism in India is a dynamic and evolving
process, shaped by historical contexts, constitutional frameworks, political
dynamics, and judicial interpretations. It embodies the essence of
collaboration between the central and state governments, balancing the
need for national unity with the diverse aspirations of India's states. As
India continues to navigate its complex federal structure, the success of
cooperative federalism will depend on the sustained commitment of both
the centre and the states to work together, prioritise the collective good,
and adapt to the changing needs of the nation. It is through this spirit of
partnership and mutual respect that India can ensure inclusive
development and maintain the delicate balance between central authority
and state autonomy
