In federalism challenges, consensus is the solution, Pg9

Key Highlights:

• Discussions on federalism have been contentious since Independence due to its critical role in nation-building.
• A growing "democratic deficit" exists where the population share and seat share are misaligned across states.
• Fiscal transfers from richer to poorer states are essential but rising continually, leading to resentment.
• Divergent performance among states, especially in fertility and economics, poses a challenge to federalism.
• The erosion of democratic sensibility in Indian politics is aggravating the challenges of fiscal federalism.
• The ruling party has acted unilaterally with minimal consultation, leading to mounting grievances and distrust.

Detailed Insights:

• Federalism has evolved since Independence, marked by debates on fiscal devolution, the centralizing effects of the Planning Commission, and the misuse of Article 356.
• Constitutional amendments in 1976 and 2002 froze political representation based on the 1971 Census until the first Census after 2026.
• By 2024, Southern states would have had 23 fewer seats and Northern states 31 additional seats if determined by the latest population estimates.
• In the early 1960s, the Hindi heartland received 20% more resources than its economic size, while the South and West got 20% less.
• By 2023, the Hindi heartland received 90% more Finance Commission resources relative to its economic base, while the South and West received about 44% and 58% less, respectively.
• Since 1980, per capita GDP in the South, West, and Haryana has grown rapidly, diverging from the Hindi heartland states.
• The growing divisiveness of Indian politics, exemplified by policies like demonetization and the Citizenship Amendment Act, is a key concern.
• Cooperative federalism is curdling into contentious federalism, leading to mounting grievances and erosion of trust.
• A basic democratic sensibility, especially on the part of the Central government, is essential for addressing the challenges of Indian federalism.

Key Concepts Involved:

• Federalism: A system of government in which power is divided between a central authority and constituent political units.
• Fiscal Devolution: The transfer of financial resources and responsibilities from the central government to state governments.
• Democratic Deficit: The gap between a state’s population share and its seat share in political representation.
• Cooperative Federalism: A concept where the center and states cooperate and coordinate to achieve common goals.