Reimagining Indian federalism

(These are the views of author)

Relevance: GS Paper II

Why in News? The return of coalition governance to New Delhi offers hope.

More About News:

• In the 2024 Lok Sabha elections, the Bharatiya Janata Party (BJP) fell short of securing a majority on its own.
• The BJP will have to form a coalition government by relying heavily on its allies in the National Democratic Alliance (NDA), which are regional parties.

Concerns over Evolution of Indian Federalism:

• There has been a perceived effort since 2014 to centralize power at the expense of State autonomy, despite rhetoric of cooperative federalism.
• This brand of federalism is viewed as coercive and combative, seeking to impose uniformity across States, such as the promotion of Hindi in southern States.
• Central agencies like the ED, CBI, and IT department are perceived as being used to exert pressure on political opponents from regional parties.
• Decisions like the nationwide lockdown during the pandemic and the creation of the PM CARES Fund are seen as undermining the role and resources of State governments.
• The abrogation of Article 370 and the revocation of Statehood for Jammu and Kashmir are considered as setting a concerning precedent for other States.
• There is a perception of disrupting the balance in fiscal federalism, with tools like the levy of cess on various items, which need not be shared with States.
• The potential lapse of the 91st Amendment in 2016, which could lead to a shift in the representation of States based on population, is seen as a concern for the federal structure.
• The decision to base the 15th Finance Commission's allocations on the 2011 Census instead of the 1971 Census is viewed as favoring certain States over others based on demographic factors.

The concerns of the southern States:

• While most people in the South recognize the need for regional balance and support richer states subsidizing poorer ones, it is crucial to ensure this does not result in financial repression of southern states.
• India's revenue distribution disproportionately favors its worst-performing states, marked by high illiteracy and population growth, leading to high-performing southern states receiving less financial support.
• Apprehensions exist that the potential increase in Lok Sabha seats for UP and Bihar after delimitation could reduce the political representation and clout of southern states.
• Questions arise over whether regional parties allied with the BJP, like the TDP, will prioritize addressing the concerns of southern states against centralization tendencies and financial disadvantages.
• A balanced federal structure is advocated, ensuring fair representation across regions while devising equitable principles for redistribution that do not financially undermine prosperous states.
• The presence of numerous regional parties in the NDA coalition will genuinely bolster cooperative federalism beyond securing ministerial berths and specific benefits for their respective states.
• Concern exists that centralization under the BJP government could persist, with regional allies failing to effectively oppose or modify contentious schemes like Agnipath.
• The earlier stance of PM Modi as Gujarat CM, championing decentralized policy making, competitive federalism and state autonomy, contrasts with a perceived centralizing push after becoming PM.
• A call for all states to collaboratively devise solutions balancing the needs of redistribution and fair representation, without resorting to "financial repression" of prosperous states.
• Underlying tensions between centripetal forces of the central government and centrifugal aspirations of states seeking greater autonomy, resources, and decision-making powers aligned with local priorities.

Revive the Inter-State Council

• The abolition of the Planning Commission has deprived states of a vital forum for discussion and coordination on federal issues.
• If reinstituting the Planning Commission is not feasible, reviving and overhauling the Inter-State Council could serve as a good starting point.
• The Inter-State Council, though envisioned in Article 263 of the Constitution, was only convened in the 1990s on the Sarkaria Commission's recommendation.
• Despite its potential to be a formidable forum for deliberation, the Council has degenerated into a mere appendage of the Ministry of Home Affairs, with little real authority.
• To serve its intended purpose, the Inter-State Council needs to be revamped and revived as an independent arena for consultation, decision-making, dispute resolution, and coordination among states, governmental departments, and different levels of government.

Conclusion:

In India, a country united by a shared sense of belonging amidst its vast diversity, it's crucial that all states, despite differing levels of development, perceive national unity as mutually beneficial. However, addressing issues such as regional, religious, and linguistic tensions requires careful navigation, as approaches emphasizing demographic advantage in resource allocation can strain the delicate fabric of our unity.