Cooperative Federalism
Principle of Centre-State collaboration for national goals, emphasizing joint action and mutual trust, vital for policy implementation and governance.
The article details the review and implementation mechanism of the National Cooperation Policy (NCP) 2025. It highlights the establishment of a 'Policy Implementation and Monitoring Committee' and a 'National Steering Committee on Cooperation Policy' for central-state coordination, troubleshooting, and periodic review. The policy is implemented using a 'Whole-of-Government approach' and in the spirit of 'cooperative federalism'. A comprehensive National Cooperative Database (NCD) has also been developed by the Ministry of Cooperation, providing data on over 8.5 lakh cooperative societies across 30 economic sectors, crucial for policy formulation and implementation, including the formation of new PACS and other primary cooperatives.
Durable syllabus ideas for revision — not article memory.
Principle of Centre-State collaboration for national goals, emphasizing joint action and mutual trust, vital for policy implementation and governance.
India's cooperative sector, with millions of members, is vital for inclusive growth, especially in rural areas, supported by policies like NCP 2025 and insti...
Previous year Prelims questions on overlapping themes and topics.
Which one of the following in Indian polity is an essential feature that indicates that it is federal in character?
Option A is correct. In a federal system, power is distributed between the central government and the states. There can be disputes about the division of power or interpretation of the Constitution.
An independent judiciary acts as an impartial umpire to settle these disputes and uphold the Constitution. It ensures that both the central government and the states function within their constitutional boundaries.The other options, while relevant to Indian polity, are not exclusive to federal systems Option B is incorrect. The Union Legislature having elected representatives from constituent units is a common feature in both federal and some unitary states with devolved power. Option C is incorrect. The Union Cabinet having elected representatives from regional parties is not a defining characteristic of federalism. Political party affiliation doesn't necessarily determine the federal structure. Option D is incorrect. The Fundamental Rights being enforceable by Courts of Law, while essential for a democracy, this feature exists even in some non-federal states.
Consider the following subjects under the Constitution of India:
I. List I–Union List, in the Seventh Schedule
II. Extent of the executive power of a State
III. Conditions of the Governor’s office
For a constitutional amendment with respect to which of the above, ratification by the Legislatures of not less than one-half of the States is required before presenting the bill to the President of India for assent?
Statement I is Correct: Any change in the Union List alters the distribution of legislative powers and requires ratification by at least half of the State Legislatures. Statement II is Correct: Changes affecting the extent of a State’s executive power also need ratification by not less than one-half of the States. Statement III is Incorrect: Conditions of the Governor’s office can be amended by Parliament alone and do not require ratification by States.
Who among the following constitute the National Development Council?
1. The Prime Minister
2. The Chairman, Finance Commission
3. Ministers of the Union Cabinet
4. Chief Ministers of the States
Select the correct answer using the codes given below:
The National Development Council (NDC) in India is comprised of the following members: * The Prime Minister (who chairs the council)
* Ministers of the Union Cabinet
* Chief Ministers of the States The Chairman, Finance Commission - while the Finance Commission plays a crucial role in recommending the devolution of financial resources from the central government to the states, the Chairman is not a member of the NDC. _Note: While the NDC was proposed to be abolished, it has not been formally dissolved, although its powers have largely been transferred to the NITI Aayog's Governing Council._
Which one of the following is not a feature of Indian federalism?
Indian federalism is characterized by key features such as an independent judiciary, a clear division of powers between the Centre and the States, and unequal representation of States in the Rajya Sabha, all of which are enshrined in the Indian Constitution. However, unlike classical federations like the United States, Indian federalism is not the outcome of an agreement among the federating units. The Indian Constitution, which lays down the framework for India's federal structure, was not created through an agreement among the federating units but was adopted by the Constituent Assembly of India.
Which of the following statements with regard to recommendations of the 15th Finance Commission of India are correct?
I. It has recommended grants of ₹4,800 crores from the year 2022–23 to the year 2025–26 for incentivizing States to enhance educational outcomes.
II. 45% of the net proceeds of Union taxes are to be shared with States.
III. ₹45,000 crores are to be kept as performance-based incentive for all States for carrying out agricultural reforms.
IV. It reintroduced tax effort criteria to reward fiscal performance.
Select the correct answer using the code given below.
The 15th Finance Commission made recommendations to promote better fiscal discipline, education, and agriculture reforms, while adjusting tax devolution among states. ✅ Statement I: Correct 4,800 crores were recommended (2022–23 to 2025–26) to incentivize states for improving educational outcomes. ❌ Statement II: Incorrect The Commission recommended 41% of Union taxes to be shared with states, not 45%. ✅ Statement III: Correct It proposed a ₹45,000 crore performance-based incentive for states to implement agricultural reforms. ✅ Statement IV: Correct It reintroduced the 'tax effort' criterion, rewarding states that better mobilize revenue in relation to their GSDP.
Consider the following statements:
With reference to the Constitution of India, if an area in a State is declared as Scheduled Area under the Fifth Schedule,
I. the State Government loses its executive power in such areas and a local body assumes total administration.
II. the Union Government can take over the total administration of such areas under certain circumstances on the recommendations of the Governor.
Which of the statements given above is/are correct?
When an area is declared a Scheduled Area under the Fifth Schedule of the Constitution, it continues to be administered by the State Government, but with special powers granted to the Governor for tribal welfare. ❌ Statement I: Incorrect The State Government does not lose its executive powers. There is no provision for a local body to take over full administration. ❌ Statement II: Incorrect The Union Government cannot take over total administration of Scheduled Areas under the Fifth Schedule, even on the Governor’s recommendation.
Consider the following pairs:
State – Description
I. Arunachal Pradesh : The capital is named after a fort, and the State has two National Parks.
II. Nagaland : The State came into existence on the basis of a Constitutional Amendment Act.
III. Tripura : Initially a Part 'C' State, it became a centrally administered territory with the reorganization of States in 1956 and later attained the status of a full-fledged State.
How many of the above pairs are correctly matched?
This question tests knowledge of historical and administrative facts about northeastern Indian states. ✅ Pair I: Arunachal Pradesh – Correct
* Itanagar, the capital, is named after Ita Fort.
* The state has two National Parks: Namdapha and Mouling. ✅ Pair II: Nagaland – Correct
* Nagaland attained statehood via a constitutional amendment and came into being on 1 December 1963 through the State of Nagaland Act, 1962. ✅ Pair III: Tripura – Correct
* Tripura was a Part 'C' state, became a Union Territory in 1956, and was granted statehood in 1972.
Which one of the following statements is correct as per the Constitution of India?
Inter-State quarantine falls under the purview of the Union List (List I) in the Seventh Schedule of the Indian Constitution. This is because matters of inter-state significance, especially those related to health and disease control, are best handled by the central government to ensure uniformity and prevent the spread of diseases across state borders. _Let's examine why the other options are incorrect:_ * Option A is incorrect: Inter-State trade and commerce is explicitly mentioned in the Union List (List I), giving the central government the power to regulate commerce that transcends state boundaries. * Option B is incorrect While individual states have some powers related to internal migration, Inter state migration is mentioned in the Union List. * Option D is incorrect Corporation tax, levied on the net income of companies, is a subject under the Union List. However, the Constitution allows for the sharing of corporation tax revenue with states.
Consider the following statements
1. The Fiscal Responsibility and Budget Management (FRBM) Review Committee Report has recommended a debt to GDP ratio of 60% for the general (combined) government by 2023, comprising 40% for the Central Government and 20% for the State Governments.
2. The Central Government has domestic liabilities of 21% of GDP as compared to 49% of GDP of the State Governments.
3. As per the Constitution of India, it is mandatory for a State to take the Central Government’s consent for raising any loan if the former owes any outstanding liabilities to the latter.
Which of the statements given above is/are correct?
Statement 1 is correct. The Fiscal Responsibility and Budget Management (FRBM) Review Committee Report indeed recommended a debt-to-GDP ratio of 60% for the general (combined) government by 2023, with 40% for the Central Government and 20% for the State Governments. This recommendation aimed to ensure fiscal discipline and sustainability. Statement 2 is not correct. The Central Government has domestic liabilities of 46.1% of GDP (2016-17) and as a percentage of GDP, States liabilities increased to 23.2 per cent at end-March 2016. Statement 3 is correct. The Constitution of India empowers State Governments to borrow only from domestic sources (Article 293(1)). Further, as long as a State has outstanding borrowings from the Central Government, it is required to obtain the Central Government's prior approval before incurring debt (Article 293 (3)).
Consider the following:
1. Demographic performance
2. Forest and ecology
3. Governance reforms
4. Stable government
5. Tax and fiscal efforts
For the horizontal tax devolution, the Fifteenth Finance Commission used how many of the above as criteria other than population area and income distance?
Based on principles of need, equity and performance, overall devolution formula is as given in the chart:
Previous year Mains questions mapped to overlapping GS syllabus topics.
"The reform process in the United Nations remains unresolved, because of the delicate imbalance of East and West and entanglement of the USA vs. Russo-Chinese alliance." Examine and critically evaluate the East-West policy confrontations in this regard.
"Energy security constitutes the dominant kingpin of India's foreign policy, and is linked with India's overarching influence in Middle Eastern countries." How would you integrate energy security with India's foreign policy trajectories in the coming years?
The National Commission for Protection of Child Rights has to address the challenges faced by children in the digital era. Examine the existing policies and suggest measures the Commission can initiate to tackle the issue.
"In contemporary development models, decision-making and problem-solving responsibilities are not located close to the source of information and execution defeating the objectives of development." Critically evaluate.
Examine the evolving pattern of Centre-State financial relations in the context of planned development in India. How far have the recent reforms impacted the fiscal federalism in India?
Discuss the rationale of the Production Linked Incentive (PLI) scheme. What are its achievements? In what way can the functioning and outcomes of the scheme be improved?
MCQs drawn from today's published current affairs.
Statement 1 is correct: The article states that the 'National Steering Committee on Cooperation Policy' is chaired by the Union Minister of Cooperation. Statement 2 is correct: The article states that the 'Policy Implementation and Monitoring Committee' is chaired by the Union Cooperation Secretary. Statement 3 is correct: The 'Policy Implementation and Monitoring Committee' includes 'Secretaries/Principal Secretaries/Additional Chief Secretaries of the Cooperative Department of all States/Union Territories'. While the National Steering Committee includes 'Hon’ble Minister-in-charge of related Ministries of the Government of India', the Policy Implementation and Monitoring Committee explicitly includes state representatives, making the statement 'Both committees include representatives from State Governments' correct in spirit, as the PIMC ensures state representation in the overall institutional mechanism.
The article explicitly mentions that the NCD 'provides critical insights into cooperatives’ geographical coverage, financial performance, etc.', 'serves as an important tool for formation of new PACS, dairy and fisheries primary cooperatives in uncovered and under-covered areas', and 'enables development of a ranking framework'. However, there is no mention of the NCD directly disbursing financial aid or subsidies. Its role is data provision and analysis for policy formulation and implementation.
The article explicitly states that the NCP was implemented through the 'Whole-of-Government approach' and in the spirit of 'cooperative federalism'. The other options do not align with the principles mentioned in the text.
Approach: Introduce the NCP and its objectives. Detail the two committees, explaining how their composition and mandates reflect cooperative federalism and the 'Whole-of-Government approach'. Conclude with their significance.
The National Cooperation Policy (NCP) 2025 aims for systematic development of the cooperative sector. Its implementation relies on robust institutional mechanisms designed to foster collaboration, embodying the principles of cooperative federalism and a 'Whole-of-Government approach'.
The institutional framework of NCP 2025, through its two key committees, strategically integrates central and state governments with other stakeholders. This collaborative design is fundamental to operationalizing cooperative federalism and the 'Whole-of-Government approach', ensuring comprehensive and inclusive development of India's vast cooperative sector.
Approach: Introduce NCD and its purpose. Detail its role in policy formulation and implementation, and then explain its broader contribution to the cooperative sector's development.
The National Cooperative Database (NCD), developed by the Ministry of Cooperation, is a comprehensive digital repository of information on cooperative societies. It serves as a critical backbone for the effective formulation and implementation of the National Cooperation Policy (NCP) 2025, driving systematic development in the sector.
The National Cooperative Database is an indispensable digital asset, transforming raw data into actionable intelligence for the cooperative movement. By enabling informed policy-making and efficient implementation, it is pivotal in fostering inclusive growth and ensuring the systematic, holistic, and sustainable development of India's diverse cooperative sector.