Cooperative federalism is the concept which reflects the relationship between centre and state where they both come together and resolve the common problems with each other’s’ cooperation. With the collaborative efforts and cooperation, different level of governments in an amicable manner, contributes towards the growth of the country.
Body:
It shows the horizontal relationship between union and states and shows neither is above the other. To ensure this relationship between centre and state, Indian constitution has incorporated certain instruments like inter-state council, Zonal council, 7th schedule etc.
Various instances have shown that the cooperative federalism is being replaced by coercive federalism:
- Taxation:
- Taxation powers are contentious issue and the Central government has won most of the disputes purely due to express provisions in the Constitution.
- In the Goods and Services Tax (GST) scenario, States have foregone some taxation powers (octroi, entry tax, luxury and entertainment taxes, etc.) but have powers to levy taxes through panchayats and municipalities
- Finance Commission report:
- Recommendations of the Finance Commission are placed before Parliament and States have no role in the debate.
- There is also no provision for an aggrieved State to challenge the report of Finance Commission on certain grounds or seek mandatory enforcement of its recommendations.
- Niti Aayog:
- Niti Aayog was envisaged as a think tank which replaced the Planning Commission.
- Senior members of the Niti Aayog descended upon Kolkata to impress upon the West Bengal government the need for agricultural reforms in the state.
- The discussion centered on the Union government’s policy directives regarding land lease laws as well as agricultural reform, a term by which the Union government means the revision of state Agricultural Produce Market Committee laws as per its vision.
- Office of Governor:
- Governor’s office is being used to the whims and fancies of the union government.
- This is despite Supreme Court’s ruling in SR Bommai Case.
- Instances of Goa, Karnataka post elections show how Governor’s office was misused.
- States having no say in appointment and transfers of Governor.
- Centrally Sponsored Schemes:
- Ministries are directly dealing with Centrally Sponsored Schemes. So, the spirit of discussion and dialogue is being replaced by diktats by various Ministries.
- Some say that there is no dialogue, which is untypical of cooperative federalism.
- Other issues:
- Deployment of paramilitary forces in states without their consent.
- Enquiries against chief ministers to settle personal equations.
Way forward:
- Greater devolution of power to states. Ideally union should have only those powers which state can’t handle and requires national unity like in the form of matters like defence, communication, foreign policy etc. This has been iterated by Sarkaria as well as Punchi commissions
- Union government consulting states before legislating over the matters of state list.
- Improved and efficient use of inter-state and zonal councils. It should inquire and advise on disputes, discuss subjects common to all states and make recommendations for better policy coordination.
- Increased fund devolution to states by the centre by taking in concerns of states wrt to the Terms of Reference of 15th Finance Commission.
- Using NITI Aayog efficiently with increased participation of states and making it functioning more democratic. Mistakes of its predecessor should not be repeated.
- Legislations related to contentious issues like land, labour and natural resources should be left to the states, as the state will promote best practices. This will also enable greater investment and economic activity in states with a favourable regulatory framework.
- States having a say in appointment and removal of governor.
- Healthy competition between the states should be encouraged.
- To deal with issues related to international treaties, WTO obligations, or the environment, an institutional mechanism must be evolved where important decisions are appropriately discussed with states.
Conclusion:
To bring competition, the centre should cooperate with the states by providing necessary autonomy in their policy making and allocating them the required funds to spend based on their own priorities.
Cooperative federalism is the concept which reflects the relationship between centre and state where they both come together and resolve the common problems with each other’s’ cooperation. With the collaborative efforts and cooperation, different level of governments in an amicable manner, contributes towards the growth of the country.
Body:
It shows the horizontal relationship between union and states and shows neither is above the other. To ensure this relationship between centre and state, Indian constitution has incorporated certain instruments like inter-state council, Zonal council, 7th schedule etc.
Various instances have shown that the cooperative federalism is being replaced by coercive federalism:
- Taxation:
- Taxation powers are contentious issue and the Central government has won most of the disputes purely due to express provisions in the Constitution.
- In the Goods and Services Tax (GST) scenario, States have foregone some taxation powers (octroi, entry tax, luxury and entertainment taxes, etc.) but have powers to levy taxes through panchayats and municipalities
- Finance Commission report:
- Recommendations of the Finance Commission are placed before Parliament and States have no role in the debate.
- There is also no provision for an aggrieved State to challenge the report of Finance Commission on certain grounds or seek mandatory enforcement of its recommendations.
- Niti Aayog:
- Niti Aayog was envisaged as a think tank which replaced the Planning Commission.
- Senior members of the Niti Aayog descended upon Kolkata to impress upon the West Bengal government the need for agricultural reforms in the state.
- The discussion centered on the Union government’s policy directives regarding land lease laws as well as agricultural reform, a term by which the Union government means the revision of state Agricultural Produce Market Committee laws as per its vision.
- Office of Governor:
- Governor’s office is being used to the whims and fancies of the union government.
- This is despite Supreme Court’s ruling in SR Bommai Case.
- Instances of Goa, Karnataka post elections show how Governor’s office was misused.
- States having no say in appointment and transfers of Governor.
- Centrally Sponsored Schemes:
- Ministries are directly dealing with Centrally Sponsored Schemes. So, the spirit of discussion and dialogue is being replaced by diktats by various Ministries.
- Some say that there is no dialogue, which is untypical of cooperative federalism.
- Other issues:
- Deployment of paramilitary forces in states without their consent.
- Enquiries against chief ministers to settle personal equations.
Way forward:
- Greater devolution of power to states. Ideally union should have only those powers which state can’t handle and requires national unity like in the form of matters like defence, communication, foreign policy etc. This has been iterated by Sarkaria as well as Punchi commissions
- Union government consulting states before legislating over the matters of state list.
- Improved and efficient use of inter-state and zonal councils. It should inquire and advise on disputes, discuss subjects common to all states and make recommendations for better policy coordination.
- Increased fund devolution to states by the centre by taking in concerns of states wrt to the Terms of Reference of 15th Finance Commission.
- Using NITI Aayog efficiently with increased participation of states and making it functioning more democratic. Mistakes of its predecessor should not be repeated.
- Legislations related to contentious issues like land, labour and natural resources should be left to the states, as the state will promote best practices. This will also enable greater investment and economic activity in states with a favourable regulatory framework.
- States having a say in appointment and removal of governor.
- Healthy competition between the states should be encouraged.
- To deal with issues related to international treaties, WTO obligations, or the environment, an institutional mechanism must be evolved where important decisions are appropriately discussed with states.
Conclusion:
To bring competition, the centre should cooperate with the states by providing necessary autonomy in their policy making and allocating them the required funds to spend based on their own priorities.