Cooperative Federalism

Cooperative federalism means a flexible relationship between the federal and state governments where powers are used jointly by the Centre and the states.

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Constitutional Provisions embodying Cooperative Federalism

  • Article 245 vests legislative power in the Parliament to make laws for the country and state legislatures to make laws for their respective states. 
  • Article 246 read with Schedule VII, demarcates the subject matters upon which the Centre and states may enact laws.
  • Article 261 provides full faith and credit to public acts, records and judicial proceedings of the Union and the state, promoting cooperation and faith.
  • Article 262 allows the Parliament to adjudicate inter-state water disputes. 

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Competitive Federalism

  • In a federal political system, “competitive federalism” refers to the existence and desirability of rivalry among governments and jurisdictions.
  • Competition among governments can be defined as rivalry whereby each government attempts to obtain some scarce benefit or resource or to avoid a certain cost.

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Fostering Localisation of SDGs

  • What does “localizing the SDGs” mean? 
    • Localization of the Sustainable Development Goals refers to how the SDGs can serve as a framework for local development policy, as well as how local and regional governments can assist the SDGs’ attainment through bottom-up action, and how the SDGs can serve as a framework for local development policy.
  • Why does localizing matter? 
    • Local and regional governments are essential for promoting inclusive sustainable development within their territories and, therefore, are necessary partners in the implementation of the SDGs. 
    • Effective local governance can ensure the inclusion of a diversity of local stakeholders, thereby creating broad-based ownership, commitment and accountability. 
    • An integrated multi-level and multistakeholder approach is needed to promote transformative agendas at the local level.
    • Strong national commitment to provide adequate legal frameworks and institutional and financial capacity is required.

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Strengthening Fiscal Federalism

  • Fiscal Federalism:
    • Fiscal Federalism is concerned with determining which functions and tools should be centralized and which should be delegated to lower levels of government.
    • This principle is applicable to all types of government, including unitary, federal, and confederal.
  • Recent Developments:
    • In recent years, India’s fiscal connections between the union and state governments have changed dramatically. 
    • The dismantling of the Planning Commission in January 2015 and the subsequent formation of the NITI Aayog were three watershed moments in union-state budgetary relations.
    • The Goods and Services Tax (GST) was introduced into the Constitution, and the GST Council was established for the national and state governments to deliberate and make joint decisions.

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Ways of Strengthening Fiscal Federalism in India

  • Fiscal Federalism should not only be a race to gather more resources but a creative attempt to raise India’s growth rate closer to the goal of double-digit growth. 
  • It is critical to rethink the design and structure of a meaningful fiscal partnership.
  • Economic slowdowns must be seen anecdotally because they are transient in nature and cannot distort India’s vision, both in terms of its potential and historical responsibilities. 
  • Only by recasting the ideology in a more current context will practice become more visible, and India will profit from the alignment of its precepts and practices.

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