T.N. Govt. Forms Panel to Recommend Measures on State Autonomy

Syllabus: GS2/Polity and Governance

Context

• The Tamil Nadu Chief Minister has set up a high-level committee to recommend measures on state autonomy with a view to protect state governments’ rights and improve working relations with the union government.

About the Committee

• It is a three member committee headed by former Supreme Court judge Justice Kurian Joseph. 
• The committee is expected to submit its interim report by January 2026 and the final report within two years.
• The mandate of the committee includes:
  • to review the Constitutional provisions, laws, rules and policies with respect to Centre-State relations; 
  • to recommend ways to restore subjects moved from the State List to the Concurrent List; 
  • to propose measures for States to overcome administrative challenges; 
  • to suggest reforms to ensure maximum autonomy for States without compromising the unity and integrity of the nation; 
  • and to consider the recommendations of the Rajamannar Committee and subsequent commissions formed by the Union government on the Centre-State relations.

Federalism and Its Key Features

• Federalism is a system of government in which the power is divided between a central authority and various constituent units of the country. 
• There are two or more levels (or tiers) of government. 
• Different tiers of government govern the same citizens, but each tier has its own jurisdiction in specific matters of legislation, taxation and administration. 
• The jurisdictions of the respective levels or tiers of government are specified in the constitution. 
• The fundamental provisions of the constitution cannot be unilaterally changed by one level of government. Such changes require the consent of both the levels of government. 
• Courts have the power to interpret the constitution and the powers of different levels of government. 
• Sources of revenue for each level of government are clearly specified to ensure its financial autonomy. 

Key Features of Indian Federalism

• Constitutional Division of Powers: The Constitution divides subjects between the Union and the States through the Union List, State List, and Concurrent List (Seventh Schedule).
• Strong Centre: The central government has more powers, especially in times of emergency.
  • The Union List contains more and significant subjects (like defense, foreign affairs).
• Single Constitution & Citizenship: India has a single constitution and single citizenship, unlike the USA.
• Independent Judiciary: The Supreme Court acts as the guardian of the Constitution and arbitrator in Centre-State disputes.
• Interstate Councils & Finance Commission: Bodies like the Inter-State Council and Finance Commission promote cooperative federalism.

Challenges to Indian Federalism

• Rising Regional Sensitivity and Sub-Nationalism: Increasing regional identity and sensitivity among states challenge national unity.
  • Political ideologies focused on regional interests may benefit specific areas but weaken the overall federal spirit.
• Financial Dependency of States: States are financially dependent on the Centre due to lack of fiscal autonomy.
  • This dependency results in operational constraints and deepens the federal crisis.
• Inequality and Political Bias: States often express grievances over unfulfilled regional demands.
  • Disparities in representation based on population and territory lead to inequality.
  • This leads to both inter-state inequality and a perception of neglect by the Centre.
• Indestructible Union, Destructible States: Unlike the U.S. model, Indian states do not have a permanent status.
  • The Union can alter, merge, or bifurcate states unilaterally.
  • This power of the Centre weakens the federal nature by making states structurally vulnerable.
• Religious Conflicts: Religious tensions lead to institutional conflicts and disrupt the unity.
  • These challenges highlight the difficulty of maintaining harmony in a diverse nation.
• Demand for new States: The continuous increase demands for the new states create a threat in the smooth operation of federalism.

Recommendations by Committees

• Sarkaria Commission (1983): To examine and review the working of the existing arrangements between the Centre and the States.
  • Key Recommendations: Strengthen the role of the Inter-State Council (Article 263) as a permanent, regular body.
    • Use Article 356 (President’s Rule) sparingly and only as a last resort.
    • More financial autonomy to states; a greater share in central taxes.
• National Commission to Review the Working of the Constitution (NCRWC) – 2000 (Headed by: Justice M.N. Venkatachaliah)
  • Key Recommendations: Strengthen fiscal federalism with greater devolution of funds to states.
    • Set up an Inter-State Trade Commission to regulate trade disputes.
    • Improve Centre-State consultation mechanisms before passing legislation affecting states.
• Punchhi Commission (2007): To revisit Centre-State relations in the context of changes since the Sarkaria Commission.
  • Key Recommendations: Limit misuse of Article 356; it should be used only in exceptional situations.
    • The Governor’s role should be non-partisan; the removal process should be more transparent.
    • Creation of a Supreme Court-authorized Inter-State Trade and Commerce Commission.
    • States should have more autonomy in subjects listed under Concurrent List.
• NITI Aayog Reforms (Post-Planning Commission): 
  • Promote Cooperative Federalism through regular consultations with states.
  • More say for states in economic planning.
  • Reorienting Centrally Sponsored Schemes based on state-specific needs.

Source: TH