Q2 · UPSC Civil Services Mains 2015 · GS II · 12 marks · 4 min read

← Q7 Q4 →

The concept of cooperative federalism has been increasingly emphasised in recent years. Highlight the drawbacks in the existing structure and extent to which cooperative federalism would answer the shortcomings.

Topic: Federal Structure and Devolution. Syllabus: Functions and responsibilities of the Union and the States, issues and challenges pertaining to the federal structure, devolution of powers and finances up to local levels and challenges therein. Same official PYQ from year-wise 2015 and Federal Structure and Devolution.

Revision summary

India’s federal text is Union-heavy: lists, Article 356, All-India Services and tied schemes. Vertical fiscal imbalance and a weak Inter-State Council were core drawbacks of the old structure. NITI Aayog, 42 per cent devolution and a GST Council are the main cooperative answers of recent years. Cooperation eases planning and tax-sharing; it does not rewrite emergency power or the Governor. Forums need money and convention, or cooperative federalism stays a slogan.

Model answer

Introduction

  • India is a Union of States with a strong Centre: a long Union List, All-India Services, and Article 356. In recent years the Union has named cooperative federalism as the method for GST, the Fourteenth Finance Commission, and NITI Aayog. Drawbacks in the old structure are real; cooperation answers some of them and leaves others in the text of the Constitution.

Body

Drawbacks in the existing structure

  • The Union List and the Concurrent List, with Union override under Article 254, let New Delhi occupy fields that States treat as their daily work: education, forests, and labour being the usual examples.
  • Centrally sponsored schemes, until recently designed in the Planning Commission, tied State budgets to Union guidelines and matching shares, so States spent on Union priorities rather than on their own Assembly mandate.
  • Article 356, even after S.R. Bommai v. Union of India (1994), remains a political weapon; fiscal dominance through the Finance Commission grant conditions and GST architecture can also squeeze State autonomy without a formal emergency.
  • All-India Services, the Governor, and Union agencies in policing and investigation create a permanent Centre footprint inside the State executive.
  • Inter-State Council under Article 263 has met too rarely to be a working federal cabinet; disputes on rivers, migration and tax still go to politics or to the Supreme Court rather than to a standing cooperative forum.
  • Vertical fiscal imbalance is structural: States spend on health, education and law and order, while the most buoyant taxes were, until GST, designed and collected more easily at the Union level.

What cooperative federalism has begun to answer

  • Cooperative federalism means the Union and the States set shared goals and share money and data, instead of the Union commanding and the State complying.
  • Replacement of the Planning Commission by NITI Aayog (2015) was sold as a shift from plan-allocation hierarchy to a think-tank and a Chief Ministers’ forum; it can ease one-size plans if States actually sit in the Governing Council as equals.
  • The Fourteenth Finance Commission raised States’ share in the divisible pool to 42 per cent, which is a structural answer to vertical imbalance and gives Assemblies more untied money.
  • A dual GST with a GST Council is cooperative in design: States vote on rates and the Union cannot lightly ignore the Council if the constitutional amendment holds that bargain.
  • Inter-State Council revival, NITI working groups, and Disaster Management structures show that some Union–State work is now done in committees rather than only by ministry letters.

How far cooperation still falls short

  • NITI Aayog does not allocate plan funds as the Planning Commission did; without money, a forum can become a seminar, and States still face Union ministries on centrally sponsored schemes.
  • GST cooperation can freeze State tax experiments; compensation politics can recreate dependence in a new form.
  • Article 356, Governors, and All-India Services are not rewritten by a slogan of cooperation; they need convention and, where needed, statute.
  • River boards, police modernisation, and language issues still show competitive and even coercive federalism when party colours differ between Raisina Hill and the State capital.
  • Cooperative federalism therefore answers a good part of planning and tax-sharing drawbacks, and it does not by itself cure emergency powers, gubernatorial discretion, or Concurrent List occupancy.

What would make the answer fuller

  • Regular Inter-State Council meetings with published minutes, a permanent GST Council bargain that States trust, and fewer CSS strings on the 42 per cent devolution would match the rhetoric.
  • Punchhi and Sarkaria recommendations on the Governor and on Article 356 remain the unfinished federal homework.

Flow diagram

flowchart TD
  D[Drawbacks lists money Art 356] --> O[Old Planning CSS hierarchy]
  C[Cooperative federalism] --> N[NITI Aayog]
  C --> F[14th FC 42 percent]
  C --> G[GST Council]
  N --> P[Partial answer]
  F --> P
  G --> P
  D --> L[Lists Governor 356 remain]

Conclusion

The existing structure is centralised in lists, money, services and emergency power. Cooperative federalism through NITI Aayog, higher Finance Commission devolution and a GST Council answers the planning and tax-share problems in part. It will answer the rest only when forums have money, the Governor is a constitutional figure, and Article 356 stays a last resort.

Quick related

Students also ask

PYQ trend

When UPSC asked this

Related PYQs from other years, newest first. Open a question to read it.

  1. 2025 · Q14 · GS II · 15 marks

    Examine the evolving pattern of Centre-State financial relations in the context of planned development in India. How far have the recent reforms impacted the fiscal federalism in India?

    View answer →

  2. 2024 · Q13 · GS II · 15 marks

    What changes has the Union Government recently introduced in the domain of Centre-State relations? Suggest measures to be adopted to build the trust between the Centre and the States and for strengthening federalism.

    View answer →

  3. 2023 · Q15 · GS II · 15 marks

    Explain the significance of the 101st Constitutional Amendment Act. To what extent does it reflect the accommodative spirit of federalism?

    View answer →

  4. 2021 · Q11 · GS II · 15 marks

    The jurisdiction of the Central Bureau of Investigation(CBI) regarding lodging an FIR and conducting probe within a particular state is being questioned by various States. However, the power of States to withhold consent to the CBI is not absolute. Explain with special reference to the federal character of India.

    View answer →

  5. 2019 · Q4 · GS II · 10 marks

    From the resolution of contentious issues regarding distribution of legislative powers by the courts, 'Principle of Federal Supremacy' and 'Harmonious Construction' have emerged. Explain.

    View answer →

  6. 2016 · Q1 · GS II · 12 marks

    Discuss the essentials of the 69th Constitutional Amendment Act and anomalies, if any, that have led to recent reported conflicts between the elected representatives and the institution of the Lieutenant Governor in the administration of Delhi. Do you think that this will give rise to a new trend in the functioning of the Indian federal politics?

    View answer →

  7. 2016 · Q7 · GS II · 12 marks

    Did the Government of India Act, 1935 lay down a federal constitution? Discuss.

    View answer →

  8. 2015 · Q4 · GS II · 12 marks

    Khap panchayats have been in the news for functioning as extra - constitutional authorities, often delivering pronouncements amounting to human right violations. Discuss critically the actions taken by the legislative, executive and judiciary to set the things right in this regard.

    View answer →

More from this topic

Q14 · UPSC Mains 2025 · GS II · 15 marks

Examine the evolving pattern of Centre-State financial relations in the context of planned development in India. How far have the recent reforms impacted the fiscal federalism in India?

Federal Structure and Devolution

Finance Commissions devolve taxes; Planning Commission Plan grants created a discretionary second channel. Sarkaria and Punchhi criticised that discretion. NITI Aayog ended Plan cheques; 14th FC raised the States’ share of the divisible pool to 42%. GST shares tax but limits State rate power; cesses outside the pool and CSS keep Union leverage. Article 293 borrowing conditions remain a hard federal tool.

Q13 · UPSC Mains 2024 · GS II · 15 marks

What changes has the Union Government recently introduced in the domain of Centre-State relations? Suggest measures to be adopted to build the trust between the Centre and the States and for strengthening federalism.

Federal Structure and Devolution

Recent Centre–State shifts: GST compensation end, cess and surcharge, centrally sponsored schemes, NITI replacing plan bargaining, Governor delays on Bills, Article 370, simultaneous-election talk. The Supreme Court in the Punjab Bills case limited pocket-veto use of Articles 200–201. GST Council remains a federal bargain; CBI consent and cadre rules remain sore. Sarkaria and Punchhi asked for an Inter-State Council, consultation, less cess, and a non-partisan Governor. Trust is procedural — calendars, terms of reference, devolution — not a communiqué. Cooperative federalism is minutes and transfers, not a chapter in a brochure.

Q15 · UPSC Mains 2023 · GS II · 15 marks

Explain the significance of the 101st Constitutional Amendment Act. To what extent does it reflect the accommodative spirit of federalism?

Federal Structure and Devolution

The 101st Constitutional Amendment, 2016, introduced GST through Articles 246A, 269A and 279A. It subsumed many Union and State indirect taxes into CGST, SGST and IGST. The GST Council gives States two-thirds vote weight and the Union one-third, with a three-fourths decision rule. Five-year compensation was the federal bargain; dual GST kept States as taxing governments. Mohit Minerals held Council recommendations not strictly binding law. Accommodation is real in design and strained in revenue politics after compensation.

Toppers' copies

Toppers' copies for this question will be uploaded soon.