Towards cooperative federalism

It is time the Centre recognised the early signs of protests from states on various governance issues

Narendra Modi had begun his innings as Prime Minister (PM) with the promise of espousing the cause of cooperative federalism. There wasn’t any detailed enunciation of what he meant by that phrase. But its broad goal was that the Centre and the states would cooperate in their joint pursuit of economic growth and development. 

Attention was also drawn to a statement Modi had made before he became the PM. In one of the speeches he delivered in New Delhi months before leading the Bharatiya Janata Party (BJP) to an impressive victory in the 2014 elections, Modi said that Team India did not consist of just the PM and his council of ministers, but it was composed of the PM and the 30-odd chief ministers. 

Four-and-a-half years later, Modi’s cooperative federalism has taken a slightly different dimension. Yes, chief ministers of the BJP-ruled states are certainly part of the Team India that he leads. But that is not the only proof of Modi’s cooperative federalism. The BJP-ruled states will have virtually no option other than toeing the line mandated by the BJP government at the Centre. The true test of cooperative federalism is how well he has got on board the chief ministers of states ruled by parties other than the BJP. And when one looks at some of the Opposition-ruled states, there is very little of the kind of cooperative federalism that Modi had talked about. 

Some months ago, Modi had visited Odisha and one of the functions he attended was to inaugurate the Jharsuguda airport after it was upgraded. It was an important event as this happened to be only the second airport in the entire state of Odisha. The chief minister of Odisha, Naveen Patnaik, was also present at the inauguration. But it was clear to all that Modi and Patnaik hardly looked like members belonging to Team India. Indeed, at the inauguration ceremony, Modi was critical of the state government and its performance. 

What happened at the Jharsuguda airport inauguration was emblematic of the strained relationship between the Centre and most Opposition-ruled states, running contrary to the earlier narrative of cooperative federalism. Take for instance, the unsavoury exchange of views between the Centre and Kerala over the offer of aid by the United Arab Emirates (UAE) to the state when it was devasted by floods. The UAE was reported to have offered Rs7 billion to help the Kerala government undertake rehabilitation efforts in the state. However, the Centre declined to accept any offer made by a foreign government for rehabilitation work in the country. 

The logic of the Modi government in not accepting the UAE offer was understandable. But what certainly could have been avoided was the manner in which the UAE offer for Kerala was allowed to become yet another controversy over how the Centre addressed the concerns of a state government. The controversy arose also because Kerala was a state ruled by an Opposition party and the Modi government’s stand fitted in with the larger narrative of the strained ties between the Centre and the Opposition-ruled states. 

Then came the decision of two more Opposition-ruled states to stop the Central Bureau of Investigation (CBI) from investigating cases within their jurisdictions. First, it was Andhra Pradesh and then it was West Bengal. Both the states alleged that the CBI was being used politically by the Centre for conducting investigations. This is a rare act of defiance by two states to prevent the CBI from conducting investigations there. It remains to be seen if other Opposition-ruled states follow suit. 

Not to be left behind, Delhi Chief Minister Arvind Kejriwal has now planned to revive the earlier pension scheme for government employees, instead of the National Pension System that was introduced from 2004. The revival of the earlier pension scheme would mean a huge additional financial obligation, but can be a big vote catcher, which can put pressure on the Centre also to rethink on the matter. The inauguration of urban development projects in Delhi has also become a bone of contention between the Centre and Kejriwal.

In less than a year from now, the Fifteenth Finance Commission (FFC) will make its recommendations on the way the Centre will be sharing its divisible pool of resources with the states. The new terms of reference for the FFC have already been questioned by some states on the ground that a few conditions for allocation of resources are either not well-defined or are linked to the fulfilment of the Centre’s programmes. For instance, who would define a populist scheme? The FFC is expected to penalise states that adopt populist schemes by recommending reduced resources for them. 

The challenge from the states is coming in different ways. The Centre cannot afford to ignore it and should engage with the states to follow the principles of cooperative federalism in letter as also in spirit.