Sambhav-2025

Approach In the introduction, define cooperative and competitive federalism and the role of the Chief Minister (CM) in the federal structure. Explain the CM’s role in cooperative and competitive federalism with examples. Analyze the impact on Centre-State relations with relevant data, arguments, and cases. Conclude suitably.

Introduction

Federalism, based on Centre-State relations, is categorized into cooperative and competitive federalism. Cooperative federalism fosters a horizontal relationship, ensuring Centre-State collaboration in public interest, while competitive federalism encourages states to compete for better governance. As the executive head (Article 164), the Chief Minister (CM) plays a key role in balancing both dynamics.

Body

Role of the Chief Minister in Cooperative Federalism:

• Implementation of Centrally Sponsored Schemes:
  • The CM ensures effective execution of schemes like Ayushman Bharat, MGNREGA, PMAY in coordination with the Centre.
  • This aligns with Article 282, which allows both Union and State governments to make grants for public welfare.
• Participation in Institutional Mechanisms:
  • The CM plays a vital role in bodies like NITI Aayog, the GST Council (Article 279A), and Zonal Councils to ensure policy alignment and fiscal coordination.
• Crisis and Disaster Management:
  • During natural calamities (handled under Entry 23, Concurrent List) and health emergencies like COVID-19, CMs worked with the Centre on vaccination policies and migrant labor issues.
• Water Disputes Resolution:
  • CMs negotiate interstate water-sharing agreements (e.g., Cauvery Water Dispute, handled under Article 262 and the Inter-State River Water Disputes Act, 1956).
• Law & Order and National Security:
  • While public order is a State Subject (Entry 1, List II), issues of internal security require cooperation with the Centre (e.g., deployment of central forces under Article 355).

Role of the Chief Minister in Competitive Federalism:

• Driving Economic and Investment Growth:
  The CM plays a crucial role in attracting FDI, boosting industrial expansion, and enhancing infrastructure by utilizing Article 301 to facilitate free trade and commerce.
  • Gujarat’s GIFT City, Karnataka’s IT sector, and Tamil Nadu’s EV policy highlight proactive economic leadership.
• Implementing Tax and Policy Reforms:
  The CM strategically adjusts taxation policies under Entry 50, List II to make the state more business-friendly, streamline approvals, and generate higher revenue.
  • Telangana’s TS-iPASS has improved ease of doing business by simplifying regulatory processes.
• Advancing Public Welfare and Governance Excellence:
  The CM introduces transformative reforms in education, healthcare, and digital services to enhance the state's social and economic indicators.
  • Delhi’s education initiatives, Kerala’s comprehensive healthcare system, and Madhya Pradesh’s e-governance advancements exemplify this approach.
• Competing in Interstate Performance Rankings:
  The CM actively works to improve the state’s standing in NITI Aayog’s SDG Index, Health Index, and Business Reform Action Plan, fostering a results-driven governance model.
  • These rankings motivate states to enhance governance effectiveness, policy execution, and service delivery to stay ahead in national rankings.

Impact on Centre-State Relations:

• Positive Aspects:
  • Strengthens fiscal federalism through Finance Commission recommendations (Article 280).
  • Enhances Centre-State policy convergence via platforms like Inter-State Council (Article 263).
  • Encourages states to innovate governance while ensuring national policy consistency.
• Challenges and Conflicts:
  • Financial Dependence: States seek greater fiscal autonomy under Article 275, arguing for higher tax devolution.
  • Governor’s Role: Appointment and discretionary powers under Article 163 sometimes lead to tensions in governance.
  • Legislative Disputes: Central laws affecting state subjects (e.g., farm laws) have sparked demands for greater consultation under Article 246.

Conclusion

The CM, as the bridge between the Centre and the State, balances cooperative and competitive federalism, ensuring economic growth, policy innovation, and governance efficiency. However, institutional mechanisms like the Inter-State Council and GST Council must be strengthened to address federal challenges. Maintaining the spirit of federalism which was envisioned in S.R. Bommai case, as the basic structure of the constitution, is essential for India’s democratic governance.