Cooperative federalism: Myth or reality

Federalism is an intrinsic part of our constitutional set up.....

                                       By Naveen Patnaik

Federalism states the sharing of power between centre and states and both are equally important for the nation's development. It's less of controlling the powers and much more of cooperation and coordination. India is a Quasi federal structure nation and to strengthen the Indian democracy federal structure is crucial that comprises of cooperative and competitive federalism in India.

Federal structure ensures the state's participation in the formulation and implementation of our nation policies. Schedule 7th of the constitution specifies about the federal structure in India. Whereas in 1990s economic reforms forwarded an idea of competitive federalism that helps states to compete among themselves and also with centre indirectly benefitting the progress of country like fascination of investors for investing their money as our states Gujarat and Maharashtra has competed for the investment. Healthy competition are evident to improve the physical and social infrastructure within the state.

Article 1 of the constitution states "India, that is Bharat,shall be a union of states" our constitution provides for governance structure primarily federal in nature and provides separate government at the union and in the states. It elaborates the legislative, administrative and financial relations between the Union and the states.

The legislative powers has been categorised into three lists Union List, The state List and the concurrent list. Union list comprises the "vital interests of the State" is the longest. Parliament has exclusive powers to legislate. If conflict happens between a state and a central legislative, the parliamentary legislation shall prevail. Residuary powers of legislation are beste in the union gives a "unitary" tilt to federalism in India. As Union and Concurrent lists have expanded the State list seems to have shrunk.

Cooperation Federalism :-

NITI Aayog establishment in 2017 has asked for competitive "cooperative federalism" emphasising the foundation of relationship between the centre and the states. The Aayog has established a dynamic institutional mechanism where eminent individuals outside the government system could be the base to policy making. With the scope for states to work together and learn from each other, offcourse for federalism to allign together these states must also fulfill their role in promotion of common national interests and aims. It's absolutely correct that powering only one side never brings mutual consensus so balance through federal structure or NITI Aayog or policies are significant, empowering states along with centre is need of the hour. 

Competitive Federalism :-

14th Finance Commission acceptance enabled states to design and enactment of programmes that suits best their needs. It is yet not opted by all states still some states are vividly taking several steps to concrete their business environments, FDI reforms, labour flexibility etc. 

Central government has also ensured the decentralisation of power and minimum interference in the state affairs. State wise Ease of Doing Business Ranking to build a massive sense of competition. Central tax revenue has been increased to 42% from 32% following the recommendation of the finance commission. Swachh Bharat Ranking System among the states is a sign of healthy competition. Under Uday scheme bailout programme of financial sector.

Various efforts are required to raise the ratioog cooperative and competitive federalism -

1. GST which is responsible for the introduction of concept of one nation one tax i.e. "pooled sovereignty " 

2. States can introduce their best practices and horizontal deployment can be done amongst the states. 

3. International issues like WTO issues, terrorism, insurgency, environment, international treaties should be discussed with the states.

4. Reactivation of the Centre - State Council ( Art 263) where disputes can be tackled and more recommendations for improvement in policies can be formed.