Meaning and Constitutional Basis
Co-operative Federalism refers to a system where the Union and State governments work together to achieve common national goals while respecting each other’s powers. It promotes coordination, collaboration, and mutual trust among different levels of government in a federal structure. The concept is embedded in the Indian Constitution, particularly in Articles 245 to 255, which distribute legislative powers between the Union and the States. Although India is described as a “Union of States” under Article 1, the Constitution establishes a balance between central authority and state autonomy. Co-operative federalism thus ensures unity of purpose while maintaining the diversity of governance across states.
Legal Framework and Features
The working of co-operative federalism is reflected in various constitutional mechanisms. The Inter-State Council (Article 263) serves as a platform for dialogue between the Centre and States. The Finance Commission (Article 280) and Goods and Services Tax (GST) Council (Article 279A) ensure fiscal cooperation and equitable distribution of resources. The concept also aligns with Article 282, which allows the Union to grant financial assistance to States for public purposes. Through these provisions, the Constitution encourages joint policymaking and collaborative execution of developmental programs, ensuring that federalism in India remains dynamic and responsive to changing socio-economic needs.
Significance and Judicial Recognition
Co-operative federalism strengthens national integration while upholding state participation in policymaking. It enables harmonization between central planning and state execution, which is vital for India’s complex and diverse society. The Supreme Court has recognized this principle in cases like S.R. Bommai v. Union of India (1994), emphasizing that federalism is part of the basic structure of the Constitution. By fostering coordination through institutions and consultation, co-operative federalism ensures that governance is inclusive, decentralized, and effective, thereby bridging the gap between constitutional theory and administrative practice.
Real-Time Example
A prominent example of co-operative federalism is the functioning of the GST Council, established under Article 279A. It comprises representatives from both the Union and the States, jointly deciding tax structures and revenue sharing. Another example is the NITI Aayog, which replaced the Planning Commission in 2015 to promote shared economic planning with active state participation. These bodies exemplify how India’s governance system relies on collective decision-making and consensus-building, reinforcing the spirit of co-operation between various tiers of government.
Mnemonic to Remember – “FISCAL”
F – Finance Commission (Article 280)
I – Inter-State Council (Article 263)
S – S.R. Bommai case
C – Co-operation between Centre and States
A – Article 279A (GST Council)
L – Leadership through NITI Aayog
The mnemonic “FISCAL” helps recall that Co-operative Federalism is rooted in financial and institutional cooperation, ensuring coordination between the Centre and States for national development.
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Discover the essence of Co-operative Federalism in India at Lawgnan.in, where the Centre and States collaborate to achieve shared goals under the Constitution. Learn how provisions like Articles 245–255, the Inter-State Council (Article 263), Finance Commission (Article 280), and GST Council (Article 279A) promote coordination, fiscal balance, and policy harmony. Through real-life examples like the NITI Aayog and S.R. Bommai case, explore how cooperative federalism ensures unity in diversity and inclusive governance. Perfect for law students, UPSC aspirants, and judiciary candidates, this guide simplifies the foundation of India’s federal partnership model.
