2015 · GS Paper 2 · Q2 · 12 marks

The concept of cooperative federalism has been increasingly emphasised in recent years. Highlight the drawbacks in the existing structure and extent to which cooperative federalism would answer the shortcomings.

In short

Cooperative federalism largely answers India's fiscal and planning drawbacks but only partially the political ones rooted in Article 356, the Governor's office and idle forums. NITI Aayog's Governing Council (2015) and the 14th Finance Commission's rise in tax devolution from 32% to 42% embody it.

Model answer

Ghissu Editorial · Verified 4 Oct 2026

Introduction
NITI Aayog's Governing Council of Chief Ministers (2015) and the 14th Finance Commission's rise in the states' tax share from 32% to 42% signalled a turn to cooperative federalism, a response to drawbacks that had made Centre-state relations hierarchical.
Drawbacks in the Existing Federal Structure
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Fiscal imbalance

States carry most social spending, but the Centre holds the buoyant taxes, and cesses stay outside the divisible pool under Article 270.

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Top-down planning

Discretionary Planning Commission grants and uniform Centrally Sponsored Schemes, faulted by the B.K. Chaturvedi Committee (2011), made states mere implementers.

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Partisan offices and idle forums

Article 356 was used over 100 times before S.R. Bommai (1994), and the Inter-State Council under Article 263 did not meet between 2006 and 2016.

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Fiscal gap narrows

Untied devolution and the GST Council under Article 279A, with states holding two-thirds of the votes, pool sovereignty, though cesses claw back part of the gain.

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Consultative planning

The Sub-Group of Chief Ministers (2015) regrouped the CSS into core and optional schemes, so states shape what they run.

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Political limits

Goodwill cannot curb the Governor's discretion, as Nabam Rebia (2016) on Arunachal Pradesh showed, and Mohit Minerals (2022) called GST Council advice persuasive, not binding.

Conclusion
Cooperative federalism largely cures the fiscal and planning drawbacks but only partially the political ones. With a regularly meeting Inter-State Council and the codified Governor norms proposed by the Punchhi Commission (2010), it can turn "Team India" into a real Union-state partnership.

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Hand-drawn diagram: Drawback and Cooperative Remedy. Drawback and Cooperative Remedy. Comparison of Existing Drawback and Cooperative Remedy
Diagram: Drawback and Cooperative Remedy

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Issues & Challenges Pertaining to the Federal Structure5 questions

Asked in 4 of 14 sittings since 2013

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2015
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2016
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2017
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2018
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2019
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2020
2
2021
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2022
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2023
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2024
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Question from the official UPSC Civil Services (Main) Examination 2015 paper. Answer written by Ghissu's engine and checked against our editorial standards. Found an error? Tell us and we correct it within 48 hours.

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