Mains Marathon 2024

Approach Briefly introduce the concept of federation in India. Discuss the dynamics of cooperation, competition, and confrontation between the Union and the States. Suggest Steps Necessary to Strengthen India's Federal Framework. Conclude Suitably

Introduction

Federalism in India, as enshrined in the Constitution, is a dynamic system designed to balance powers and responsibilities between the Union and State governments. The Seventh Schedule divides powers into three lists:

• Union List: Powers exclusive to the central government.
• State List: Powers exclusive to the state governments.
• Concurrent List: Powers shared by both the central and state governments.

This structure has evolved significantly over time due to the interplay of cooperation, competition, and confrontation between the Union and State governments.

Body

Dynamics of Cooperation

• Collaborative Mechanisms:
  • Inter-Governmental Councils: Bodies such as the Inter-State Council, established under Article 263, facilitate cooperation between the Union and States. The National Development Council (NDC) also plays a role in fostering joint development efforts.
  • Fiscal Federalism: The Finance Commission, established under Article 280, recommends the distribution of central revenues to states, promoting fiscal stability and equitable resource allocation.
• Successful Collaborative Initiatives:
  • Policy Implementation: Successful examples include joint efforts in national rural employment schemes, health programs like the National Rural Health Mission (NRHM), and infrastructure projects such as the Pradhan Mantri Gram Sadak Yojana (PMGSY).
  • Disaster Management: Effective cooperation during natural disasters, such as the 2004 Indian Ocean tsunami and recent floods, demonstrates the Union and States working together for emergency response and relief.

Dynamics of Competition

• Political and Electoral Competition:
  • Electoral Rivalries: Political competition between regional parties and national parties often influences federal dynamics, affecting governance and policy-making. Regional parties assert state interests, which can lead to conflicts with central policies.
  • Balancing Centralization and Regionalism: India walks a tightrope between central authority for national unity and state autonomy for regional needs. Strong central governments can be seen as overstepping, while strong regional movements can threaten national cohesion.
    • South Indian states have distinct Dravidian languages and cultures that are central to their identity.The imposition of Hindi as a national language has led to protests, especially in southern states like Tamil Nadu..
  • State Autonomy: Competition for resources and political influence can lead to disputes over state autonomy and central intervention in state matters.
    • The abrogation of Article 370 of the Constitution, granting special status to Jammu and Kashmir, in 2019, was done by the central government without consulting the state legislature. This move has been criticized for undermining federal principles
• Economic and Resource Competition:
  • Unequal Revenue Distribution: The 15^th Finance Commission recommended a higher share of central taxes for states, increasing it from 32% to 41%. However, states often complain that the funds are insufficient and not disbursed timely, leading to fiscal stress.
    • Furthermore, the southern states frequently complain about receiving fewer funds despite contributing more in taxes compared to the northern states, attributing this disparity to their lower population.
  • Competition for Investment: States often compete for foreign direct investment (FDI), which can lead to imbalances.
    • For instance, Maharashtra and Gujarat attract substantial FDI, while northeastern states receive minimal investment, exacerbating regional inequalities.
  • Legitimacy of the Redistributive Model :
    • Southern states, which generally have more robust economies and contribute significantly to the national GDP, feel that the GST model disproportionately benefits less economically developed states.
    • They demand a more equitable and balanced approach to GST redistribution that recognizes their higher contributions, addresses revenue shortfalls, and supports their developmental needs

Dynamics of Confrontation :

• Regional Discontent:
  • Regionalism establishes itself through demands for autonomy on the grounds of language and culture. The nation thus faces the challenge of internal security in the form of insurgency and this causes upheavals in the basic notion of Indian federation.
    • The Bodos, a major tribe in Assam, have a long-standing demand for a separate Bodoland state.
    • The Gorkhas, an ethnic group concentrated in Darjeeling hills of West Bengal, have a long-standing demand for a separate Gorkhaland state.
• Disputes in Division of Powers:
  • The Constitution divides powers between the Centre and states (Union List, State List, Concurrent List). However, this division can be blurry, leading to conflicts over jurisdiction, especially on issues like agriculture or education in the Concurrent List.
    • The three farm laws passed by the central government in 2020 were challenged by states like Punjab on the grounds that agriculture is a State List subject. This highlights the ongoing disputes over interpretation of power division.
• Misuse of Governor's Office :
  • The misuse of the Governor's office has increasingly become a matter of concern, particularly in matters related to the arbitrary dismissal of state governments, manipulation in government formation, withholding assent to bills, and frequent transfers and appointments, often directed by the central ruling party.
    • In Arunachal Pradesh (2016), the Governor's recommendation led to the imposition of President's Rule despite the ruling government having majority support, later quashed by the Supreme Court.
• Misuse of Article 356 :
  • Article 356, also known as the President’s Rule, is designed to be invoked when a state cannot function constitutionally. It grants the Union Cabinet power to dismiss democratically elected state governments and dissolve legislative assemblies
  • Historically, Article 356 has been used to impose President's Rule over 100 times until 2000, disrupting state autonomy. Although its usage has decreased, its potential misuse remains a concern.
    • In 1988 the Sarkaria Commission found that at least a third of all Article 356 impositions were politically motivated.

Steps Necessary to Strengthen India's Federal Framework :

• Enhancing Devolution of Powers:
  • Federalism can be strengthened by enhancing devolution of powers and resources to states and local bodies by revising the constitutional lists, increasing the share of states in central taxes, giving more fiscal autonomy and flexibility to states, etc.
    • The Sarkaria Commission (1988) advocated for greater autonomy for states in areas listed in the State List of the Seventh Schedule of the Constitution.
• Ensuring Equitable Development:
  • Resource Sharing Formula: Develop a transparent and objective formula for distributing central funds to states, considering factors like population, poverty levels, and infrastructure needs.
    • The Raghuram Rajan Committee (2017) advocated for a formula-based devolution of central funds to states based on objective criteria.
  • Addressing Regional Disparities: Address regional imbalances and inequalities by providing special assistance and support to backward and disadvantaged regions or groups.
    • The 15^th Finance Commission recommended allocating more state-specific grants alongside the creation of high-level committees within each state to review and monitor utilisation of state-specific and sector-specific grants.
• Strengthening Inter-governmental Institutions:
  • Revitalizing the Inter-State Council (ISC): Make the ISC a more effective forum for resolving inter-state disputes and fostering cooperation on national issues. This could involve giving it more power to evolve common policies.
    • On the recommendation of Sarkaria Commission the government has established a permanent inter state council but it hasn't fully lived up to the Sarkaria Commission's vision.
  • Enhancing Communication and Coordination: Establish regular channels of communication between the Centre and States to ensure smoother policy implementation and address regional concerns.
    • Punchhi Commission proposed the creation of a superseding structure, the ‘National Integration Council,’ for matters related to internal security, enhancing coordination and effectiveness.
• Respecting Federal Principles and Spirit:
  • Minimizing Central Intervention: The Centre should avoid excessive use of its powers under Articles 355 and 356 of the Constitution, which allow for imposition of President's rule in states. This ensures greater autonomy for states.
    • The Sarakria Commission suggested Article 356 (President’s Rule) should be used very sparingly, in extreme cases as a last resort when all the available alternatives fail.
  • Ensuring Greater Representation and Participation: Increased participation from state representatives ensures their concerns and priorities are heard at the national level.
    • For Example, the appointment of Governor should be more transparent and consultative. Punchhi Commission recommends the Chief Minister’s involvement in Governor appointments.

Conclusion

A forward-looking approach to federalism in India will be one that celebrates its diversity, fosters cooperation and builds a harmonious and prosperous future for all its citizens. This is not just a political necessity but a testament to the resilience and unity that defines the Indian Republic