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UID:16708-1652517000-1652522400@www.forumfed.org
SUMMARY:India Governance Forum:  Cooperative Federalism
DESCRIPTION:A look at the larger picture of the Indian federation drives home the need and significance of reinforcing and\nstrengthening the “cooperative” element in our federal structure is the key factor in formulating the fiscal\nrelationship in the Indian economy. Experts believe that moving forward\, “cooperative” federalism would be best\nserved by four constituents\, namely the Finance commission\, NITI Aayog\, Goods and Services Tax (GST)\, and de facto\ndecentralization. All these four constituents can play a vital role in strengthening the bond between the centre and\nstate governments and among the state governments. \nNearly three decades ago\, the passage of the 73 rd and 74 th constitutional amendments paved the way for possible\nuniformity of decentralised governance\, as far as ULBs and Panchayati Raj Institutions (PRIs) were concerned. The facile\nmanner in which the implementation has proceeded in almost all the states is common knowledge\, wherein both the\nletter and the spirit of the amendments appear to have been sacrificed at the altar of political practice. It was partly\nbecause of this behaviour of states and also the recognition of the importance of empowering local governments\, that the\nlast five finance commissions have been successively providing more and more funds. \nThe Fifteenth Finance Commission has identified the three pillars of India’s fiscal federal architecture. The first of the\nthree pillars\, fiscal rules\, requires significant reforms to achieve aggregate fiscal discipline and requires cooperation\nbetween governments and their agencies. The second pillar\, the public finance management (PFM) system\, is crucial at all\nlevels of government. The third pillar is that of an institution/organization\, more correctly\, for independent assessment.\nThe international best practices lead one to believe that setting up of independent fiscal councils could go a long way\nin bringing about the reforms delineated in the three-pillar fiscal federal architecture.\nSome of the big ideas in the traditional debates on decentralisation have been: (a) the involvement of the union\ngovernment in subjects in “State List”– either through the erstwhile Planning Commission (now NITI Aayog) and other\nelements of expenditure of the union government; (b) the ineffectiveness of 74 th constitutional amendment act that\nempowered the city governments\, and (c) increasing gaps between socio-economic and political developments in\ndifferent geographies of the country. \nFurther\, increasing digitalisation seems to be leading to a heightened centralisation. There is little capacity at the state\nlevel to manage the 21st century technology led changes. Covid has also brought about changes in the federal structure\nand governance: it has necessitated the need for governments to work together; local governments are expected to\nprovide solutions and respond to challenges; and\, greater digitalisation is providing sub-national governments better\nopportunities to execute and collect revenue. Perhaps\, there is need to relook into the subjects under central\, state and\nconcurrent lists; what can be added or moved. \n   \nFor More Information: https://igf.skoch.in/event_list/cooperative-federalism/ \n 
URL:https://www.forumfed.org/event/india-governance-forum-cooperative-federalism/
LOCATION:Zoom / Youtube
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