Answer: 

Introduction:

Cooperative federalism refers to a collaborative relationship between the central and state governments, where both levels of government work together in the decision-making process and share responsibilities for national development. In recent years, there has been an increased emphasis on cooperative federalism in India to ensure inclusive growth and address various challenges faced by the nation.

Body:

Drawbacks in the existing structure:

• Imbalance of financial resources: The central government has a greater share of financial resources compared to the states, leading to dependency on central grants and fiscal imbalances among states.
• Overlapping jurisdictions: Concurrent subjects listed in the Constitution, such as education and forests, often lead to overlapping jurisdictions and disputes between the center and states.
• Centralized planning: Historically, centralized planning has neglected the specific needs of states and regions, hampering their development.
• Ineffective coordination: Poor coordination between the center and states in implementing policies and programs has led to inefficiencies and duplication of efforts.
• Politicization of issues: Political differences between the central and state governments can impede cooperation and adversely affect policy implementation.

Extent to which cooperative federalism addresses these shortcomings:

• Financial devolution: The 14th Finance Commission increased the states’ share in central taxes from 32% to 42%, promoting a more equitable distribution of financial resources and empowering states to meet their development needs. The Goods and Services Tax (GST) Council, which includes representatives from both central and state governments, promotes cooperation in matters related to taxation and ensures that states’ concerns are addressed.
• Collaborative policy-making: The NITI Aayog, which replaced the Planning Commission, involves states in the formulation of national policies and fosters a spirit of cooperation.
• Enhanced coordination: The centrally sponsored schemes are increasingly designed with greater flexibility to accommodate states’ specific requirements and promote better coordination.
• Conflict resolution: The creation of the Inter-State Council under Article 263 of the Constitution helps resolve disputes and fosters cooperation between states and the center.

Conclusion:

The successful adoption of cooperative federalism would require a commitment from both levels of government to work together, setting aside political differences in the interest of national development.

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