The Chief Minister of Tamil Nadu has set up a high-level committee to make recommendations on state autonomy to safeguard the rights of state governments and improve cooperation with the central government
A three-member committee, led by former Supreme Court judge Justice Kurian Joseph, has been established. The committee is anticipated to present its interim report by January 2026 and its final report within two years. Its responsibilities include:
Federalism and Its Key Features
Federalism is a governance system where power is shared between a central authority and various regional units. It involves multiple levels of government, each governing the same citizens but with distinct jurisdictions over legislation, taxation, and administration. The constitution outlines the jurisdictions of each government level, and fundamental constitutional provisions cannot be altered by one level alone; both levels must agree on any changes. Courts have the authority to interpret the constitution and the powers of different government levels, and revenue sources for each level are clearly defined to ensure financial independence.
Key Features of Indian Federalism
Challenges to Indian Federalism
Increasing Regional Sensitivity and Sub-Nationalism: The growing emphasis on regional identities and sensitivities among states poses a threat to national unity. Political ideologies that prioritize regional interests may benefit certain areas but undermine the overall spirit of federalism.
Financial Dependency of States: States rely heavily on the central government for financial support due to a lack of fiscal independence. This reliance creates operational limitations and exacerbates the federal crisis.
Inequality and Political Bias: States frequently voice concerns over unmet regional demands. Disparities in representation, influenced by population and territory, result in inequality, leading to both inter-state disparities and a sense of neglect from the central government.
Indestructible Union, Destructible States: Unlike the U.S. system, Indian states do not have guaranteed permanence. The central government has the authority to alter, merge, or divide states unilaterally, which undermines the federal structure and makes states vulnerable.
Religious Conflicts: Tensions related to religion can lead to institutional conflicts and disrupt national unity. These issues underscore the challenges of maintaining harmony in a diverse country.
Demand for New States: The ongoing calls for the creation of new states threaten the smooth functioning of federalism.
Recommendations by Committees
Sarkaria Commission (1983): This commission was tasked with reviewing the existing arrangements between the Centre and the States. Key recommendations included enhancing the role of the Inter-State Council (Article 263) as a permanent body, using Article 356 (President’s Rule) sparingly, and granting states greater financial autonomy with a larger share of central taxes.
National Commission to Review the Working of the Constitution (NCRWC) – 2000 (Led by Justice M.N. Venkatachaliah): This commission recommended strengthening fiscal federalism through increased fund devolution to states, establishing an Inter-State Trade Commission to manage trade disputes, and improving consultation mechanisms between the Centre and States before enacting legislation that impacts states.
Punchhi Commission (2007): This commission revisited Centre-State relations in light of developments since the Sarkaria Commission. Key recommendations included limiting the misuse of Article 356 to exceptional cases, ensuring the Governor's role is non-partisan with a more transparent removal process, creating a Supreme Court-authorized Inter-State Trade and Commerce Commission, and granting states more autonomy over subjects in the Concurrent List.
NITI Aayog Reforms (Post-Planning Commission): These reforms aim to promote cooperative federalism through regular consultations with states, increasing state involvement in economic planning, and tailoring Centrally Sponsored Schemes to meet specific state needs.
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