Sept. 6, 2024
The Future of Federalism in IndiaSource:IE
Context: In recent years, the government has placed increased emphasis on both cooperative and competitive federalism through institutions like the National Institution for Transforming India (NITI) Aayog. However, numerous state governments have raised concerns about the Union government's alleged withholding of Goods and Services Tax (GST) compensation funds, leading to instances of confrontational federalism.
Federalism: Federalism involves the distribution of powers and responsibilities between the central government and state governments. It aims to maintain unity while allowing for regional self-governance.
Evolution of the concept of Federalism in India
• Inner-Party Federalism (1950-67): Disputes between the federal government and the states were resolved in Congress party forums.
• Expressive Federalism (1967-89): This phase marked the emergence of an era of “expressive” federal dynamics between the Congress-led Centre and the opposition-led states.
• Multi-Party Federalism (1990-2014): The 1990s saw National coalitions maintaining influence in the union with the help of regional powers.
• Confrontational Federalism (2014- 2024): This period saw the rise of confrontational federalism, marked by significant disputes between opposition-led states and the center.
Why is there a Need to Strengthen Federalism in India?
• To preserve linguistic diversity and cultural Plurality
• To Safeguard rights of State and accommodate regional aspirations
• To empower local bodies
• To facilitate equitable distribution of financial resources between the Centre and states and greater State autonomy in Spending
Challenges to Federalism in India
• Regional Discontent: Regionalism establishes itself through demands for autonomy on the grounds of language and culture. Example: The Bodos demand for a separate Bodoland state and the Gorkhas demand for a separate Gorkhaland state.
• Disputes in Division of Powers: The division of powers can be blurry leading to conflicts over jurisdiction, especially on issues like agriculture or education in the Concurrent List. Ex; the three farm laws passed by the central government in 2020 were challenged by states like Punjab on grounds that agriculture is a State List subject.
• Misuse of Governor's Office: The misuse of the Governor's office is 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.
• Misuse of Article 356: Historically, Article 356 has been used to impose President's Rule over 100 times until 2000, disrupting state autonomy.
• Fiscal Imbalances: The 15th 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.
• Asymmetric Representation in Parliament: In Lok Sabha, representation is based on population, with larger states having more seats.
• Inter-State Disputes: Ex: Cauvery River water dispute between Tamil Nadu and Karnataka, Belagavi(Belgaon) border dispute between Karnataka and Maharashtra.
Strategy 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.
• Ensuring Equitable Development: Adoption of transparent and formula-based devolution of central funds to states based on objective criteria.
• Strengthening Inter-governmental Institutions:Revitalizing the Inter-State Council (ISC) as an effective forum for resolving inter-state disputes and fostering cooperation on national issues.
• Fostering Cooperative and Competitive Federalism:In cooperative federalism, the centre and states work together on issues of national importance like national security, disaster management, and economic development. This ensures a unified approach to achieving common goals.
In competitive federalism, states compete for investments and talent by improving infrastructure, public services, and regulatory frameworks. This fosters innovation and better governance practices across the country.
• Respecting Federal Principles and Spirit: The Centre should avoid excessive use of its powers under Articles 355 and 356 of the Constitution which allows for imposition of President's rule in states. This ensures greater autonomy for states.
Question for mains
Discuss Federalism in India. Identify challenges and suggest measures to strengthen India's federal structure.