Cooperative Federalism

Notes

Cooperative federalism means that the Centre and States work as partners, sharing resources and responsibilities, rather than in a hierarchy. The term was used by Granville Austin for the Indian Constitution. India is described by K.C. Wheare as "quasi-federal"; Art. 1 calls India a "Union of States"; and the Supreme Court in S.R. Bommai (1994) held that federalism is a basic feature.

Federal features: a written Constitution, division of powers (Seventh Schedule), supremacy of the Constitution, independent judiciary, bicameral Parliament. Unitary tilt: strong Centre, single citizenship, All-India Services, Governor's appointment, emergency provisions, Parliament's power to reorganise States (Art. 3), integrated judiciary.

Institutions of cooperation

GST Council (Art. 279A): the best example of fiscal cooperation.
Finance Commission: vertical and horizontal devolution (41% share to States in 2021-26).
NITI Aayog (1 January 2015), which replaced the Planning Commission, with a Governing Council of Chief Ministers; "Team India" approach.
Inter-State Council (Art. 263) and Zonal Councils; concurrent list consultation; centrally sponsored schemes; All-India Services.
Competitive federalism: States compete through rankings: Ease of Doing Business, SDG India Index, School Education Quality Index, Good Governance Index. India promotes "cooperative competitive federalism".

Judicial position: State of West Bengal v Union of India (1962) (strong Centre); S.R. Bommai (1994) (federalism basic structure; Art. 356 reviewable); Government of NCT of Delhi v Union of India (2018, 2023) (cooperative federalism and the Delhi Government's control over services).

Challenges: Governors' role, rising cesses and surcharges outside the divisible pool, centrally sponsored schemes with fixed conditions, use of Art. 356, central agencies in States, fiscal dependence of States, and delimitation concerns. Sarkaria (1988) and Punchhi (2010) Commissions recommended greater consultation.

Key Points

Cooperative federalism: Centre and States as partners (Granville Austin).
Federalism is a basic feature (Bommai, 1994).
GST Council, Finance Commission, NITI Aayog, Inter-State Council are the key institutions.
Competitive federalism: ranking-based State competition.
Challenges: Governors, cesses, centrally sponsored schemes, Art. 356.

MCQs

Q1. The term "cooperative federalism" in the Indian context is associated with: (a) Granville Austin (b) K.C. Wheare (c) Dicey (d) Laski Ans: (a). Wheare called India "quasi-federal".

Q2. NITI Aayog replaced the Planning Commission on: (a) 1 January 2015 (b) 15 August 2014 (c) 26 January 2015 (d) 1 April 2015 Ans: (a).

Q3. Which case held that federalism is a basic feature of the Constitution? (a) Kesavananda Bharati (b) S.R. Bommai v Union of India (c) Minerva Mills (d) Maneka Gandhi Ans: (b). 1994.