News Highlight
The NITI Aayog was constituted in 2015 to foster cooperative federalism through structured support initiatives and measures.
Key Takeaway,
- Unfortunately, NITI Aayog has yet to take any significant steps since its constitution to promote cooperative federalism.
- Contrary to its public statements on promoting cooperative federalism, the Government of India has been doing the opposite.
Federalism
- Federalism is a system of government in which powers and responsibilities have been divided between the different levels of government.
NITI Aayog
- About
- NITI Aayog is the premier policy ‘Think Tank’ of the Government of India, providing both directional and policy inputs.
- Foundation
- NITI Aayog was formed via a resolution of the Union Cabinet in 2015 as a replacement for the planning commission
- Composition
- The Prime Minister chairs NITI Aayog.
- For all practical purposes, a Vice-Chairman in the rank of a Cabinet Minister.
- The Prime Minister nominates four Union ministers as Ex-officio members.
- Special Invitees are also nominated to NITI Aayog.
- Objectives
- The vision of the NITI Aayog will then provide a framework ‘national agenda’ for the Prime Minister and the Chief Ministers to provide impetus to.
- To foster cooperative federalism through structured support initiatives and mechanisms with the States on a continuous basis, recognising that strong States make a strong nation.
Significance of the NITI Aayog
- Cooperative federalism
- NITI Aayog identifies the best practices in different States in various sectors and then tries to replicate them in other states.
- Innovation
- The Atal Innovation Mission, also established under NITI Aayog, has already done commendable work in improving the innovation ecosystem in India.
- It has established Atal Tinkering Labs in schools across the country. It has also set up Atal Incubation Centres to encourage young innovators and start-ups.
- Accountability
- NITI Aayog is also bringing about a greater level of accountability in the system.
- India had 12 Five-Year Plans earlier, but they were mostly evaluated long after the plan period had ended.
- Hence, there was seldom real accountability.
- Convergence
- NITI Aayog works to cut across the departments within the government to push an agenda forward.
- Improving efficiency
- The performance and outcome-based real-time monitoring and evaluation of government work through the Development Monitoring and Evaluation Office, which collects data on the performance of various Ministries on a real-time basis, significantly improves the efficiency of governance.
Criticisms of NITI Aayog and Undermining federalism
- Bureaucratisation
- The number of various classes of employees, including support staff in NITI Aayog, is over 500.
- Therefore, there is a resemblance with the existing bureaucratic structures in any government department.
- Thus it is against the “minimum government maximum governance.”
- Confined role of NITI Aayog
- NITI Aayog has been confined to writing reports on the Indian economy, preparing draft laws for the Union government, evaluating central schemes and holding conferences with state government officials.
- As a result, there is a vacuum as the NITI Aayog is primarily a think tank with no resources to dispense, which renders it toothless to undertake a “transformational” intervention.
- Increasing Central Dominance in Fiscal Policies
- A series of steps by the Union government undermined fiscal federalism principles. This has been manifested by:
- Increasing the monetary share of the States in Centrally Sponsored Schemes (CSS).
- Imposition of demonetisation without adequate consultation with the States.
- Taxation Related Issues
- Enlarging the non-divisible pool of taxes in the form of cess in petrol tax and instituting the Agriculture Infrastructure and Development Cess have resulted in a situation where the Union continues to benefit from tax collection exclusively.
- Inadequate Funding
- The cash-starved States have been seeking non-tax avenues to generate funds to sustain their programmes.
- The suspension and transfer of the Member of Parliament Local Area Development (MPLAD) funds to the Consolidated Fund of India led to a significant crisis for most States.
Way forward
- NITI Aayog 2.0
- NITI Aayog should be restructured in such a way that they have given a funding role so that it can help deal with the development experience between states.
- Strengthening Inter-State Relations
- State governments shall consider deploying human resources to support them in preparing responses to the consultations initiated by the Union, mainly focusing on the federalism angle.
- Consultation is the Key
- The essence of cooperative federalism lies in consultation and dialogue, whereas unilateral legislation without taking the States into confidence will only lead to protests on the streets.
- Political Will
- Upholding federalism requires political maturity and a commitment to the federal principle.
- A politics for deepening federalism will need to overcome nationalist rhetoric that pits federalism against nationalism and development.
Content Source: The Hindu