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9th NITI Aayog Governing Council Meeting
CONTEXT:
The skipping of 10 State and Union Territory representatives at the NITI Aayog’s ninth Governing Council meeting highlights significant discontent with the think tank’s role and effectiveness.
About the 9th Governing Council Meeting:
- Chaired by Prime Minister Shri Narendra Modi on July 27, 2024, at the Rashtrapati Bhavan Cultural Centre, New Delhi.
- The theme was ‘Viksit Bharat@2047’, with a focus on making India a developed nation.
- The Meeting discussed the Approach Paper for the Vision Document on Viksit Bharat @2047, aiming to enhance governance and collaboration between the Centre and States.
- It will focus on improving the quality of life through better delivery of government services and defining the states’ roles in achieving the vision of a developed India by 2047, fostering teamwork as ‘Team India’.
- There was demand from the opposition that NITI Aayog must be re-envisioned to bring back some of the responsibilities that the Planning Commission had for States for a truer “cooperative federalism”.
Cooperative Federalism:
Granville Austin mentioned Indian federalism as “cooperative federalism”.
Need for Cooperative Federalism:
- Ensuring Accommodation and Diversity: Cooperative federalism, combined with cultural and ethnic pluralism, provides the political system with flexibility and resilience, enabling it to manage stress through effective accommodation and diversity.
- Balancing Social Justice: While democracy reflects the majority’s opinion, cooperative federalism integrates and connects it with minority voices, enhancing social justice.
- Ensuring Stability and Growth: Considering India is a developing nation, a cooperative federal setup was crucial for addressing security, defence needs, welfare state aspirations, and economic crises effectively.
Challenges to Cooperative Federalism:
- Over-Centralization: India’s quasi-federal system, with more powers and resources favouring the Union and a larger Union list, hampers cooperative federalism and reduces state participation.
- Ineffective Inter-State Council: The Inter-State Council, intended as a consultation platform between the Centre and states, has largely been ineffective, meeting only twice in 50 years and failing to advance cooperative federalism.
- One-Size-Fits-All Approach: A “One Size Fits All” approach, used by both the Planning Commission and NITI Aayog, overlooks the diverse needs of different states, leading to difficulties in policy implementation and collaboration, and causing continued suffering in many states.
- Fiscal Federalism: Unequal distribution of financial resources between the Centre and states hampers states’ ability to deliver essential services and implement development programs.
Constitutional Provisions
- Article 54: State Representation in Presidential Elections
- In the President’s election, members of legislative assemblies contribute to the Electoral College, representing state interests.
- Article 80: Rajya Sabha /Council of States Representation
- The Council of States represents states in the union legislative process.
- Schedule VII and Article 246:It outlines the subject matters for which both the Centre and states can legislate, including those in the Concurrent List.
- Article 262:It empowers the Parliament to adjudicate inter-state water disputes by setting up a Tribunal.
- Article 263: It establishes Inter-State Councils to investigate matters of mutual interest to both the Centre and states.
- Article 279:The 101st Amendment Act of the Indian Constitution introduced the Goods and Services Tax (GST), and established the GST Council to implement a unified tax system that aims for “one nation, one tax”.
- Article 312: All India Service for a unified administrative system.
Other Provisions for cooperative Federalism
- Zonal Councils: Finance commission, Centrally sponsored schemes, NITI Aayog.
Drawbacks of NITI Aayog:
- Financial clout: NITI Aayog does not have the power of budgetary allocation which is to be vested in the finance ministry.
- The Planning Commission enjoyed the power to allocate funds/budgetary support to ministries and state governments.
- Consultations with States on grants and projects have become limited after the end of the Planning Commission.
- NITI Aayog has no role in influencing private or public investment.
- Inadequate Focus on Key Issues: NITI Aayog has struggled to address crucial socio-economic challenges, such as the declining labour force participation rate among women and the informalisation of the organised sector.
- It does not have the power to analyse the performance of various government schemes.
Way Forward to enhance NITI Aayog Functioning:
- Focus on the implementation rather than only focusing on the recommendations of the policies.
- Expand Financial Authority: To enhance its effectiveness in policy implementation, provide NITI Aayog with financial authority or influence over resource allocation.
- Enhance State Involvement: Increase the inclusiveness and active participation of state governments in planning and decision-making processes and to address concerns of marginalisation.
- Develop Expertise and Engage Stakeholders: Recruit experts from diverse fields, including non-government sources, to strengthen NITI Aayog’s capabilities, and foster engagement with stakeholders from the private sector, academia, and civil society to enrich the policy-making process.
- Along with measuring the performance alone, NITI Aayog also needs to emphasise on building the capacity to perform.
- People participation should also be provided enough attention in the administrative structure of NITI Aayog .