Reaffirm cooperative federalism

Context: Current handling of the pandemic has resulted into federal strains. Thus , there is a need to relook at the principles  of cooperative federalism.

Federalism in Indian context

• Uniquely suited to India: Although different federations like America, Australia etc were studied, constitutional makers employed “pick and choose policy”.

• Cooperative federalism: essentially defined by administrative cooperation between Centre and States, and partial dependence of States on Centre in financial devolution. 

• This doesn’t result in weaker states vis a vis Centre but represents that progress of nation rests on cooperation between the two.

Challenges in Centre-State cooperation

• Zone classification: States have demanded more autonomy is making such classification 

• Avoiding consultation: “National Plan” under Section 11 of DMA mandates state consultation before formulation

• Unequal treatment: While donations under PM-CARES can avail CSR exemption, the same has not been provided for CM Relief Fund which disincentivize  State’s relief efforts.

• States’ dried up resources because of liquor ban, negligible sales of petrol, low GST collections have made states dependent on Centre.

Way forward

• As the states act as first responders, supplying them with adequate finds is prerequisite. This requires Centre to view states as equals instead of increasing dependencies.