💥Join UPSC 2027,2028 Mentorship (August Batch) + XFactor Notes & Microthemes PDF
Talk to Mentor

Civilsdaily

Login

Subject: Federal System

  • Promoting fiscal federalism

    Context

    States are facing financial constraints in the backdrop of lockdown and consequent dwindling revenue collection. The situation also highlights the issues of fiscal federalism in India.

    Issues facing fiscal federalism in India

    1) Issue of 14% compensation

    • As per the Constitution (One Hundred and First Amendment) Act, compensation on account of the implementation of GST will be available for a period of five years.
    • 14% increment assurance: At the time of introducing the Goods and Services Tax (GST) law assured States a 14% increase in their annual revenue for five years (up to July 1, 2020).
    • But the Union government has deviated from the statutory promise and has been insisting that States avail themselves of loans.
    • The future interest liability of these loans should not be placed on the shoulders of the States.
    • Borrowing limits built into loan: Moreover, the borrowing limit of States, as per the Fiscal Responsibility and Budget Management Act, should not be built into these loans.

    2) Conditional increase in borrowing limit

    • Last year, the Union government increased the borrowing ceiling of the States from 3% to 5% for FY 2020-21.
    • But conditions are attached to 1.5% of the 2% of increased ceiling.
    • Attaching conditions for expenditure out of the borrowed amount would clip the wings of the States and goes against the principle of cooperative federalism.

    Way forward

    • Introduce special rate: A special rate could be levied for a specified period in order to raise additional resources to meet the challenges posed by COVID-19 with the approval of the GST Council.
    • As per Section 4(f) of Article 279A, the Union government can consider introducing any special rate to raise additional resources during the pandemic (any natural calamity or disaster).
    • The present GST compensation period will end in 2021-22.
    • Increase the period beyond five years:  Compensation beyond five years requires a constitutional amendment.
    • If this period is not increased, it will create serious financial stress to the States, especially to those which require higher compensation.

    Conclusion

    There is a need for measures on part of the Central government to consolidate fiscal federalism in the aftermath of pandemic and implementation of the GST regime in India.

  • Assam-Mizoram Boundary Dispute

    Five Assam police personnel were killed in an exchange of fire with the Mizoram Police after the protracted border row between the two northeastern States took a violent turn.

    Assam-Mizoram Boundary Dispute

    • At the heart of the dispute over the 165-km Assam-Mizoram boundary are two border demarcations that go back to the days of British colonial rule, and disagreement over which demarcation to follow.
    • British tea plantations surfaced in the Cachar plains – the Barak Valley that now comprises the districts of Cachar, Hailakandi and Karimganj — during the mid-19th century.
    • Their expansion led to problems with the Mizos whose home was the Lushai Hills.
    • In August 1875, the southern boundary of Cachar district was issued in the Assam Gazette.
    • The Mizos say this was the fifth time the British had drawn the boundary between the Lushai Hills and the Cachar plains, and the only time when it was done in consultation with Mizo chiefs.

    Creation of new states

    • But in 1933, the boundary between Lushai Hills and the then princely state of Manipur was demarcated – it said the Manipur boundary began from the trijunction of Lushai Hills, Cachar district of Assam and Manipur state.
    • The Mizos do not accept this demarcation, and point to the 1875 boundary which was drawn in consultation with their chiefs.
    • In the decades after Independence, states and UTs were carved out of Assam – Nagaland (1963), Arunachal Pradesh (UT 1972, formerly NEFA), Meghalaya (UT 1972), Mizoram (UT 1972).

    A matter of perception

    • Mizoram says Assam has been pushing its people 10-12 km inside their territory.
    • Mizoram’s official stand is that the boundary should be demarcated on the basis of notification in 1875 that distinguished the Lushai Hills (erstwhile district of Assam that became Mizoram) from the plains of Cachar.
    • The notification is based on the Bengal Eastern Frontier Regulation Act, 1873, which makes it obligatory for Indians beyond to possess a travel document to enter Mizoram.
    • Assam also has border disputes with Arunachal Pradesh, Meghalaya, and Nagaland.

  • Secrecy of Vote must in any election: SC

    The Supreme Court has again held that in any election, be it to Parliament or State legislature, the maintenance of secrecy of voting is “a must”.

    What is the Secret Vote?

    • The secret vote/ secret ballot is a voting method in which a voter’s choices in an election or a referendum are anonymous.
    • It aims for forestalling attempts to influence the voter by intimidation, blackmailing, and potential vote-buying.
    • The system is one means of achieving the goal of political privacy.

    What did the Supreme Court rule?

    • Secrecy is a part of the fundamental right of freedom of expression.
    • The confidentiality of choice strengthens democracy.
    • The principle of secrecy of ballots is an important postulate of constitutional democracy, the court said.
    • It is the policy of the law to protect the right of voters to the secrecy of the ballot.
    • Even a remote or distinct possibility that a voter can be forced to disclose for whom she has voted would act as a positive constraint and a check on the freedom to exercise of the franchise.

    Voter’s discretion is allowed

    • A voter can also voluntarily waive the privilege of non-disclosure.
    • The privilege ends when the voter decides to waive the privilege and instead volunteers to disclose to whom she had voted.
    • Nor can a complaint be entertained from any, including the person who wants to keep the voter’s mouth sealed as to why she disclosed for whom she voted said the court.

  • What is Adjournment Motion?

    Ahead of the Monsoon session of Parliament, a political party from Punjab has decided to move an adjournment motion in the Lok Sabha against the government on the three controversial farm laws.

    Revise all the devices of parliamentary proceedings from your Polity Book.

    Recalling the three laws

    1. Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, 2020
    2. Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Act, 2020
    3. Essential Commodities (Amendment) Act, 2020

    [Burning Issue] Agricultural Reform Bills, 2020

    What is Adjournment Motion?

    • Adjournment motion is aimed to draw the attention of the House to a recent matter of urgent public importance having serious consequences.
    • The matter proposed to be raised should be of such a character that something very grave which affects the whole country and its security has happened.
    • The House is required to pay its attention immediately by interrupting the normal business of the House.
    • It can introduce only in the Lok Sabha.
    • It involves an element of censure against the government, therefore Rajya Sabha is not permitted to make use of this device.
    • In the event of an adjournment motion being adopted, the House automatically stands adjourned.

    How it is held?

    • It is regarded as an extraordinary device as it interrupts the normal business of the House.
    • It needs the support of 50 members to be admitted.
    • The notice of an adjournment motion is required to be given on the prescribed form.
    • A member can give not more than one notice for any one sitting.
    • The discussion on this motion should last for not less than two hours and thirty minutes.

    Restrictions to the motion

    The right to move a motion for an adjournment of the business of the House is subject to the following restrictions. It should:

    • Not raise a question of privilege.
    • Not revive discussion on a matter that has been discussed in the same session.
    • Not deal with any matter that is under adjudication of court.
    • Not raise any question that can be raised on a distinct motion.

    Answer this PYQ in the comment box:

    Q.The Parliament of India exercises control over the functions of the Council of Ministers through:

    1. Adjournment motion
    2. Question hour
    3. Supplementary questions

    Select the correct answer using the code given below: (CSP 2017)

    (a) 1 only

    (b) 2 and 3 only

    (c) 1 and 3 only

    (d) 2 and 3 only

  • Kongu Nadu region of Tamil Nadu

    A list of new Union Cabinet ministers issued has triggered a debate in political circles in Tamil Nadu, as well as on social media, by referring to ‘Kongu Nadu’, the informal name for a region in the western part of the state.

    Where is Kongu Nadu?

    • ‘Kongu Nadu’ is neither a place with a PIN code nor a name given formally to any region.
    • It is a commonly used name for part of western Tamil Nadu.
    • In Tamil literature, it was referred to as one of the five regions of ancient Tamil Nadu.
    • There were mentions of ‘Kongu Nadu’ in Sangam literature as a separate territory.
    • The name derives from Kongu Vellala Gounder, an OBC community with a significant presence in these districts.
    • The region includes prominent businesses and industrial hubs at Namakkal, Salem, Tirupur and Coimbatore.

    Is there any ground for the allegations about a planned bifurcation?

    • Unlike Telangana or Uttarakhand, there has never been demand or discussions about a separate Kongu Nadu in the modern political history of Tamil Nadu.
    • The debate, therefore, lacks any political or social context.

    Back2Basics: Sangam Age

    • The ‘Sangam’ describes a period from the sixth century BC to the third century AD encompassing today’s Tamil Nadu, Kerala, the southern parts of Karnataka and Andhra Pradesh, and northern Sri Lanka.
    • The Tamil Sangams or Cankams were assemblies of Tamil scholars and poets that, according to traditional Tamil accounts, occurred in the remote past.
    • It is named for scholarly congregations in and around the city of Madurai, located about 400 km southwest of Chennai.
    • It generally refers to a collection of poems, composed by Tamil poets, both men and women developed in the ancient Southern state of India.
    • It mostly deals with emotional and material topics such as love, war, governance, trade and bereavement.

  • Mekedatu Dam Project

    Karnataka and Tamil Nadu are again at the crossroads against the Mekedatu dam project in the Cauvery River Basin.

    What is the Mekedatu Project?

    • Mekedatu, meaning goat’s leap, is a deep gorge situated at the confluence of the rivers Cauvery and Arkavathi, about 100 km from Bengaluru, at the Kanakapura taluk in Karnataka’s Ramanagara district.
    • In 2013, then Karnataka announced the construction of a multi-purpose balancing reservoir project.
    • The project aimed to alleviate the drinking water problems of the Bengaluru and Ramanagara districts.
    • It was also expected to generate hydroelectricity to meet the power needs of the state.

    Issues with the project

    • Soon after the project was announced TN has objected over granting of permission or environmental clearance.
    • Explaining the potential for damage to the lower riparian state of TN, it said that the project was in violation of the final award of the Cauvery Water Disputes Tribunal.
    • It stated that the project will affect the natural flow of the river Cauvery considerably and will severely affect the irrigation in TN.

    What do the Cauvery Water Disputes Tribunal and the Supreme Court say?

    • The Cauvery Water Disputes Tribunal, in its final order on February 2007, made allocations to all the riparian States — Karnataka, Kerala and Tamil Nadu, apart from the Union Territory of Puducherry.
    • It also stipulated “tentative monthly deliveries during a normal year” to be made available by Karnataka to Tamil Nadu.
    • Aggrieved over the final order for different reasons, the States had appealed to the Supreme Court.
    • In February 2018, the court, in its judgment, revised the water allocation and increased the share of Karnataka by 14.75 thousand million cubic feet (tmc ft) at the cost of Tamil Nadu.
    • The enhanced quantum comprised 4.75 tmc ft for meeting drinking water and domestic requirements of Bengaluru and surrounding areas.

    What is Karnataka planning?

    • Encouraged by the Supreme Court verdict, Karnataka, which sees the order as an endorsement of its stand, has set out to pursue the Mekedatu project.
    • Originally proposed as a hydropower project, the revised Mekedatu dam project has more than one purpose to serve.
    • A hydropower plant of nearly 400 MW has also been proposed.
    • The Karnataka government has argued that the proposed reservoir will regulate the flow to Tamil Nadu on a monthly basis, as stipulated by the Tribunal and the Supreme Court.
    • This is why Karnataka has contended that the project will not affect the interests of Tamil Nadu farmers.

  • Delimitation of Jammu and Kashmir

    The Jammu and Kashmir Delimitation Commission has completed its consultation with various and stated that it would base its final report on the 2011 Census to add at least seven more seats to the 83-member Assembly of the erstwhile state.

    Agenda for delimitation

    • Delimitation will be conducted on the basis of the 2011 census report. This assumes significance because the last delimitation exercise was conducted 26 years ago in 1995, and that too was based on the census of 1981.
    • Apart from the demographics indicated in the Census, the commission will also take into account practicality, geographical compatibility, topography, physical features, means of communication and convenience available.
    • Twenty-four seats that are reserved for Pakistan-occupied Jammu and Kashmir (PoJK) would not be delimited in this process. This further makes the delimitation exercise relevant because some political parties argue, that this freeze has created inequity for the Jammu region.
    • The commission will also specify the number of seats to be reserved for the SC and the ST communities in the UT. This is important because despite having a sizeable tribal population, no seats had ever been reserved in the past for the Scheduled Tribes in Jammu and Kashmir.
    • A draft report will be prepared and put in the public domain for consensus and feedback. Only after the fresh comments, the final draft will be prepared.

    What is Delimitation and why is it needed?

    • Delimitation is the act of redrawing boundaries of an Assembly or Lok Sabha seat to represent changes in population over time.
    • This exercise is carried out by a Delimitation Commission, whose orders have the force of law and cannot be questioned before any court.
    • The objective is to redraw boundaries (based on the data of the last Census) in a way so that the population of all seats, as far as practicable, be the same throughout the State.
    • Aside from changing the limits of a constituency, the process may result in a change in the number of seats in a state.

    How often has delimitation been carried out in J&K?

    • Delimitation exercises in J&K in the past have been slightly different from those in the rest of the country because of the region’s special status — which was scrapped by the Centre in August 2019.
    • Until then, the delimitation of Lok Sabha seats in J&K was governed by the Constitution of India, but the delimitation of the state’s Assembly was governed by the J&K Constitution and J&K Representation of the People Act, 1957.
    • Assembly seats in J&K were delimited in 1963, 1973 and 1995.
    • The last exercise was conducted by the Justice (retired) K K Gupta Commission when the state was under President’s Rule and was based on the 1981 census, which formed the basis of the state elections in 1996.
    • There was no census in the state in 1991 and no Delimitation Commission was set up by the state government after the 2001 census as the J&K Assembly passed a law putting a freeze until 2026.

    Why is it in the news again?

    • After the abrogation of J&K’s special status in 2019, the delimitation of Lok Sabha and Assembly seats in the newly-created UT would be as per the provisions of the Indian Constitution.
    • On March 6, 2020, the government set up the Delimitation Commission, headed by retired Supreme Court judge Ranjana Prakash Desai, which was tasked with winding up delimitation in J&K in a year.
    • As per the J&K Reorganization Bill, the number of Assembly seats in J&K would increase from 107 to 114, which is expected to benefit the Jammu region.

  • Fresh stirrings on federalism as a new politics

    Context

    • Several issues such as vaccine wars, debates over the Goods and Services Tax (GST), the fracas over West Bengal’s Chief Secretary, and the pushback against controversial regulations in Lakshadweep have once again brought into focus the idea of federalism.
    • The Dravida Munnetra Kazhagam, since taking office, has begun to craft an ideological narrative on State rights, by re-introducing the term Union into the public discourse and pushing back against increased fiscal centralisation

    Lack of political consensus among States for genuine federalism

    • Federalism in India has always had political relevance, but except for the States Reorganisation Act, federalism has rarely been an axis of political mobilisation.
    • Fiscal and administrative centralisation persisted despite nearly two decades of coalition governments.
    • Rather than deepen federalism, the contingencies of electoral politics have created significant impediments to creating a political consensus for genuine federalism.

    Three challenges in deepening federalism among States

    1) Tendency to equate federalism as against nationalism

    • The grammar of development and nationalism, which has mass electoral appeal is used to undermine federalism.
    • Slogans such as ‘one nation, one market’, ‘one nation, one ration card’, ‘one nation, one grid’ symbolise development and nationalism while leaving little space for federalism.
    • In this context, federalism as a principle risks being equated with regionalism and a narrow parochialism that is anti-development and anti-national.

    2) Lack of federal principles

    • Pratap Bhanu Mehta has pointed out that over the decades, federal principles have been bent in all kinds of ways to co-produce a political culture of flexible federalism.
    • Federalism in this rendition is reduced to a game of political upmanship and remains restricted to a partisan tussle.
    • Claimants of greater federalism often maintain silence on unilateral decisions that affect other States.
    • For instance, the downgrading of Jammu and Kashmir into a Union Territory, the notification of the NCT of Delhi (Amendment) Act, 2021 hardly witnessed protests by States that were not directly affected by these.

    3) Economic and governance divergence among states

    • Across all key indicators, southern (and western) States have outperformed much of northern and eastern India.
    • This has resulted in a greater divergence rather than expected convergence with growth.
    • This has created a context where collective action amongst States becomes difficult as poorer regions of India contribute far less to the economy but require greater fiscal resources to overcome their economic fragilities.
    • These emerging tensions were visible when the 15th Finance Commission (FC) was mandated to use the 2011 Census rather than the established practice of using the 1971 Census.
    • This, Southern states feared, risked penalising States that had successfully controlled population growth by reducing their share in the overall resource pool.
    •  With the impending delimitation exercise due in 2026, these tensions will only increase.

    Way forward

    • A politics for deepening federalism will need to overcome a nationalist rhetoric that pits federalism against nationalism and development.
    • Reclaim fiscal federalism:  Weak fiscal management has brought the Union government on the brink of what economist Rathin Roy has called a silent fiscal crisis.
    • The Union’s response has been to squeeze revenue from States by increasing cesses.
    • Its insistence on giving GST compensation to States as loans (after long delays) and increasing State shares in central schemes.
    • Against this backdrop, both sub-nationalist sentiments and the need to reclaim fiscal federalism create a political moment for a principled politics of federalism.
    • Sharing burden with poorer States: On the fiscal side, richer States must find a way of sharing the burden with the poorer States.
    • An inter-State platform that brings States together in a routine dialogue on matters of fiscal federalism could be the starting point for building trust and a common agenda.
    • Overcome isolationist tendency: The politics of regional identity is isolationist by its very nature.
    • An effort at collective political action for federalism based on identity concerns will have to overcome this risk.
    • Finally, beyond principles, a renewed politics of federalism is also an electoral necessity.

    Consider the question “Federalism in India has always had political relevance, but it has rarely been an axis of political mobilisation. What are the factors responsible for this? Suggest the way forward for the states to overcome these factors.” 

    Conclusion

    A renewed politics of federalism would require immense patience and maturity from regional parties. It remains to be seen whether they up to the task.

  • Government creates Ministry of Cooperation

    The Union Government has created a new Ministry of Cooperation with an aim to strengthen the cooperative movement in the country.

    With the creation of the Ministry of Cooperation, there will now be a total of 41 central government ministries. Several of these ministries also have separate departments and organizations under them.

    What defines a Cooperative?

    • A cooperative is “an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned enterprise”.
    • Cooperatives are democratically owned by their members, with each member having one vote in electing the board of directors.

    Ministry of Cooperation

    • The ministry has been created for realizing the vision of ‘sahkar se samriddhi’ (through cooperation to prosperity).
    • The NGO Sahakar Bharati, whose founder member Satish Kashinath Marathe is a part-time director on the RBI board, says it was the first to pitch for the creation of a separate ministry for the cooperative sector.
    • It will provide a separate administrative, legal and policy framework for strengthening the cooperative movement in the country.
    • It will help deepen cooperatives as a true people-based movement reaching up to the grassroots.
    • The ministry will work to streamline processes for ‘ease of doing business’ for cooperatives and enable the development of multi-state cooperatives (MSCS).

    Why need such Ministry?

    • In our country, a Co-operative based economic development model is very relevant where each member works with a spirit of responsibility.
    • This creation has signalled its deep commitment to community-based developmental partnerships.

    Second new ministry created so far

    • The Ministry of Cooperation is the second ministry to be created since 2019 after the Modi government came to power for the second time.
    • Soon after taking charge, the government had created the Jal Shakti ministry.
    • However, it was not altogether new as the Ministry of Cooperation.
    • It was created by integrating two existing ministries dealing with water — Water Resources, River Development and Ganga Rejuvenation, and Drinking Water & Sanitation ministry.

  • How poll results are challenged, and when courts have set them aside

    West Bengal CM has filed an election petition in the Calcutta High Court challenging the Assembly election result of Nandigram constituency, where she had contested and lost.

    What is an election petition?

    • The Election Commission’s role ends with the declaration of results, that is once the Returning Officer has signed the final result sheet (Form 20).
    • After that, an election petition is the only legal remedy available to a voter or a candidate who believes there has been malpractice in an election.
    • Such a person can challenge the result through an election petition submitted to the High Court of the state in which the constituency is located.
    • Such a petition has to be filed within 45 days from the date of the poll results; nothing is entertained by courts after that.
    • Although the Representative of the People Act of 1951 suggests that the High Court should try to conclude the trial within six months, it usually drags on for much longer, even years.

    On what grounds can an election petition be filed?

    Under Section 100 of the RP Act, an election petition can be filed on the grounds that:

    • On the day of the election, the winning candidate was not qualified to contest.
    • The winning candidate, his poll agent or any other person with the consent of the winning candidate has indulged in a corrupt practice. Section 123 of the RP Act has a detailed list of what amounts to corrupt practice, including bribery, use of force or coercion, appeal to vote or refrain from voting on grounds of religion, race, community, and language.
    • Improper acceptance of the nomination of the winning candidate or improper rejection of a nomination.
    • Malpractice in the counting process, which includes improper reception, refusal or rejection of any vote, or the reception of any vote which is void.
    • Non-compliance with the provisions of the Constitution or the RP Act or any rules or orders made under the RP Act.

    What happens if the court finds that a contention of malpractice is correct?

    • This depends on relief that is claimed by the petitioner in her election petition.
    • Under Section 84 of the RP Act, the petitioner may ask that the results of all or the winning candidates may be declared void.
    • In addition to that, the petitioner may also ask the court to declare her (in case the petition is filed by a candidate) or any other candidate as the winner or duly elected.
    • So the verdict on an election petition, if found in favour of the petitioner, may result in a fresh election or the court announcing a new winner.

    Have there been any election results that were declared void because of an election petition?

    • There are many examples, the most famous being the Allahabad High Court verdict of 1975 which set aside Indira Gandhi’s election from Rae Bareli constituency, four years earlier, on grounds of corrupt practice.
    • The election petition was filed by her nearest rival Raj Narain who had lost by over one lakh votes.
    • The High Court found that Indira Gandhi’s election agent Yashpal Kapur, the DM of Rae Bareli, the Superintendent of Police of Rae Bareli and the Home Secretary of UP government helped in the arrangements for her election tour.
    • This amounted to a corrupt practice under Section 123 (7) of the RP Act.