Hindu Editorial Analysis : 16-November-2023
In recent years, the relationship between the Union government and the States in India has witnessed a surge in disputes, highlighting the complexities within the federal structure.
Federalism in India: A Brief Overview
Meaning of Federalism: Federalism involves a vertical division of power, where authority is shared between a central government and constituent entities. In India, this power division spans the Central government, state governments, and local governance institutions.
Features of Indian Federalism:
- Multiple levels of government ensure a decentralized system.
- Power division reduces the likelihood of conflicts.
- A written constitution clarifies the distribution of power.
- Independent judiciary resolves disputes between government levels.
‘Holding Together’ Federalism: India’s federal structure evolved as a ‘holding together’ model, emphasizing interdependence between the Union and State governments, deviating from the typical autonomous spheres seen in federal constitutions.
Indestructible & Flexible Constitution: B. R. Ambedkar characterized India’s federation as indestructible, offering flexibility for a federal or unitary approach based on the situation.
Types of Federalism in India
Cooperative Federalism:
- Involves cooperation between entities for socio-economic development.
Competitive Federalism:
- Promotes healthy competition among states for economic development.
Fiscal Federalism:
- Deals with financial powers, tax imposition, and fair fund division through bodies like the Finance Commission.
Increasing Federal Frictions
Dependence on Public Expenditure:
- State autonomy in public expenditure policies is constrained by reliance on the Centre for revenue.
Other Areas of Conflict:
- Issues in resource sharing, homogenization of social sector policies, regulatory institutions, and central agency powers.
Increasing Influence of Centre:
- Apex bodies attempt to expand influence, limiting state discretion in policy matters.
Economic Consequences of Federal Frictions
Dilemma of Investments:
- Centralized planning curtails state flexibility in infrastructure development, leading to underinvestment.
Concentrated Spending:
- Central spending concentrated in a few states affects regional economies, hindering local level linkages.
Limited Competition:
- States, facing fiscal constraints, struggle to compete with the Centre in welfare provisioning.
Inefficiencies of Parallel Policies:
- Trust deficit in the federal system results in duplication of policies, with long-term fiscal consequences.
Why In News
In recent times, there has been a notable surge in both the frequency and intensity of conflicts between the Union government and the States.
MCQs about Navigating Challenges in Indian Federalism
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What is the main purpose of Cooperative Federalism in India?
A. Encouraging competition among states
B. Division of financial powers
C. Promoting socio-economic development through cooperation
D. Autonomy in public expenditure
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In the context of federal frictions, what role does the judiciary play in India’s federal structure?
A. Legislative coordination
B. Dispute resolution mechanism
C. Policy formulation
D. Fiscal oversight
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What economic consequence arises from the concentrated spending of the Centre within a few states?
A. Increased state autonomy
B. Enhanced regional economies
C. Limited local level linkages
D. Diversified fiscal policies
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