Attorney General of India

• Article 76 has provided for the office of the Attorney General for India
• He is the highest law officer in the country.

Appointment and Term

• Attorney General (AG) is appointed by the President.
• He must be a person who is qualified to be appointed a judge of the Supreme Court. In other words, he must be a citizen of India and he must have been a judge of some high court for five years or an advocate of some high court for ten years or an eminent jurist, in the opinion of the president.
• Term of office of the Attorney General is not fixed by the Constitution. Further, the Constitution does not contain the procedure and grounds for his removal. He holds office during the pleasure of the president. This means that he may be removed by the president at any time. He may also quit his office by submitting his resignation to the president. Conventionally, he resigns when the government (council of ministers) resigns or is replaced, as he is appointed on its advice.
• Remuneration of the Attorney General is not fixed by the Constitution. He receives such remuneration as the President may determine.

Duties and Functions

As the chief law officer of the Government of India, the duties of the Attorney General include the following:

• To give advice to the Government of India upon such legal matters, which are referred to him by the president.
• To perform such other duties of a legal character that are assigned to him by the President.
• To discharge the functions conferred on him by the Constitution or any other law.

President has assigned the following duties to the Attorney General

• To appear on behalf of the Government of India in all cases in the Supreme Court in which the Government of India is concerned.
• To represent the Government of India in any reference made by the president to the Supreme Court under Article 143 of the Constitution.
• To appear (when required by the Government of India) in any high court in any case in which the Government of India is concerned.

Rights and Limitations

• In the performance of his official duties, the Attorney General has the right of audience in all courts in the territory of India.
• Further, he has the right to speak and to take part in the proceedings of both the Houses of Parliament or their joint sitting and any committee of the Parliament of which he may be named a member, but without a right to vote.
• He enjoys all the privileges and immunities that are available to a member of Parliament.

Following limitations are placed on the Attorney General in order to avoid any complication and conflict of duty

• He should not advise or hold a brief against the Government of India.
• He should not advise or hold a brief in cases in which he is called upon to advise or appear for the Government of India.
• He should not defend accused persons in criminal prosecutions without the permission of the Government of India.
• He should not accept appointment as a director in any company or corporation without the permission of the Government of India.

However, the Attorney General is not a full-time counsel for the Government. He does not fall in the category of government servants. Further, he is not debarred from private legal practice.

Solicitor General of India

• In addition to the Attorney General, there are other law officers of the Government of India. They are the solicitor general of India and additional solicitor general of India. They assist the Attorney General in the fulfilment of his official responsibilities.
• It should be noted here that only the office of the Attorney General is created by the Constitution. In other words, Article 76 does not mention about the solicitor general and additional solicitor general.

The Attorney General is not a member of the Central cabinet. There is a separate law minister in the Central cabinet to look after legal matters at the government level.

Special  Officer for  Linguistic  Minorities

• Originally, the Constitution of India did not make any provision with respect to the Special Officer for Linguistic Minorities.
• Later, the States Reorganisation Commission (1953-55) made a recommendation in this regard.
• Accordingly, the Seventh Constitutional Amendment Act of 1956 inserted a new Article 350-B in Part XVII of the Constitution.This article contains the following provisions
  • There should be a Special Officer for Linguistic Minorities. He is to be appointed by the President of India
  • It would be the duty of the Special Officer to investigate all matters relating to the safeguards provided for linguistic minorities under the Constitution
  • He would report to the President upon those matters at such intervals as the President may direct. The President should place all such reports before each House of Parliament and send to the governments of the states concerned.

Qualifications

• Constitution does not specify the qualifications, tenure, salaries and allowances, service conditions and procedure for removal of the Special Officer for Linguistic Minorities.

Commissioner of Linguistic Minorities

• In pursuance of the provisions of Article 350-B of the Constitution, Office of Special Officer for Linguistic Minorities was created in 1957. He is designated as the Commissioner for Linguistic Minorities.
• Commissioner has his headquarters at Allahabad (Uttar Pradesh). He has three regional offices at Belgaum (Karnataka), Chennai (Tamil Nadu) and Kolkata (West Bengal). Each is headed by an Assistant Commissioner.
• Commissioner is assisted at headquarters by Deputy Commissioner and an Assistant Commissioner. He maintains liaison with the State Governments and Union Territories through nodal officers appointed by them.
• At the Central level, the Commissioner falls under the Ministry of Minority Affairs. Hence, he submits the annual reports or other reports to the President through the Union Minority Affairs Minister

Functions

• To investigate all matters related to safeguards provided to the linguistic minorities
• To submit to the President of India, the reports on the status of implementation of the Constitutional and the nationally agreed safeguards for the linguistic minorities
• To monitor the implementation of safeguards through questionnaires, visits, conferences, seminars, meetings, review mechanism, etc

Objectives

• To provide equal opportunities to the linguistic minorities for inclusive development and national integration
• To spread awareness amongst the linguistic minorities about the safeguards available to them
• To ensure effective implementation of the safeguards provided for the linguistic minorities in the Constitution and other safeguards, which are agreed to by the States / UTs
• To handle the representations for redress of grievances related to the safeguards for linguistic minorities”

National Commission for Socially & Educationally Backward Classes (NCSEBC)

102nd Amendment Act gave constitutional status to National Commission for Socially and Educationally Backward Classes  .

Features of Bill

• Constitutional status: Constitution of a Commission under Article 338B for socially and educationally backward classes. (Earlier National Commission for Backward Caste was Statutory Body)
• One list instead of two: It stipulates only one central list for OBC, same as that for Scheduled Caste and Scheduled Tribe. There would be no parallel existence of central and state OBC lists. 
• Parliament to decide on inclusion/exclusion – Law of Parliament (State Legislature) will be required if the list of backward classes is to be amended.  (Earlier done by Executive order of Union and State Governments)

Functions of Commission under Article 338 B

• Look into inclusion of Castes in List of Socially and Educationally Backward Classes and recommend it to President
• Look into Development & Welfare needs in addition to reservations to be looked after by NCSEBC
• Hear Grievances  of socially and educationally backward classes, a function which has been discharged so far by the National Commission for Scheduled Castes

Structure

• The Commission, which will have
  • Chairperson
  • Vice-chairperson and
  • 3 members

Benefits of Amendment

1. Transparency: It is difficult to get an arbitrary decision passed in the Parliament than through an executive order.
2. Stopping Political opportunism: Exposure of state and central governments to pressures of non-backward communities to force their way into the list would reduce as opposition cannot easily blame the government 
3. Constitutional authority: Giving it a constitutional authority will ensure it has more power in terms of hearing complaints from OBC members like SC/ST commissions
4. Taking Holistic Measures to address issues of Socially and Educationally Backward Classes : It will look into developmental and welfare measures of Socially & Educationally Backward Classes along with Reservation

Issues with the Amendment and Commission

• Flawed Composition : In accordance with SC judgement on Mandal case to have NCBC as an expert body, NCBC act 1993 provided that
  • Chairman should be a former judge
  • One member should be a social scientist
  • Two persons with special knowledge of the socially backward classes.

This feature of expert body is not provided for in the composition of the NCSEBC Bill (Constitutional Amendment not passed Rajya Sabha  due to composition)

• Against Federal structure: Bill makes Parliament the final authority on inclusion of communities in the OBC list and, therefore, takes away the authority of states which can now send requests to the NCSEBC

• Recommendations of new NCSEBC still not binding. 

• On a similar footing as SC/STs: The amendment has brought both BCs and SC/STs in the same league in terms of discrimination, exclusion and violence which lacks logic and historical justification.

National Commission for Scheduled Tribes

Why Separate NCST

• It is a constitutional body in the sense that it is directly established by Article 338-A of the Constitution
• Geographically and culturally, the STs are different from the SCs and their problems are also different from those of SCs. In 1999, a new Ministry of Tribal Affairs was created to provide a sharp focus to the welfare and development of the STs. 
• Hence, in order to safeguard the interests of the STs more effectively, it was proposed to set up a separate National Commission for STs by bifurcating the existing combined National Commission for SCs and STs. This was done by passing the 89th Constitutional Amendment Act of 2003.

Composition of NCST

It  consists of

1. Chairperson
2. Vice-chairperson
3. 3 other members.

They are appointed by President by warrant under his hand & seal. Their conditions of service and tenure of office are also determined by the President

Functions of the Commission

1. To investigate and monitor all matters relating to the constitutional and other legal safeguards for the STs and to evaluate their working;
2. To inquire into specific complaints with respect to the deprivation of rights and safeguards of the STs;
3. To  participate and advise on the planning process of socio-economic development of the STs and to evaluate the progress of their development under the Union or a state;
4. To present to the President, annually and at such other times as it may deem fit, reports upon the working of those safeguards;
5. To make recommendations as to the measures that should be taken by the Union or a state for the effective implementation of those safeguards and other measures for the protection, welfare and socio-economic development of the STs; and
6. To  discharge such other functions in relation to the protection, welfare and development and advancement of the STs as the President may specify.

Other Functions of the Commission

In 2005, the President specified the following other functions of the Commission in relation to the protection, welfare and development and advancement of the STs

• Measures to be taken over conferring ownership rights in respect of minor forest produce to STs living in forest areas
• Measures to be taken to safeguard rights of the tribal communities over mineral resources, water resources etc., as per law
• Measures to be taken for the development of tribals and to work for more viable livelihood strategies
• Measures to be taken to improve the efficacy of relief and rehabilitation measures for tribal groups displaced by development projects
• Measures to be taken to prevent alienation of tribal people from land and to effectively rehabilitate such people in whose case alienation has already taken place
• Measures to be taken to elicit maximum cooperation and involvement of tribal communities for protecting forests and undertaking social afforestation
• Measures to be taken to ensure full implementation of the Provisions of Panchayats (Extension to the Scheduled Areas) Act, 199
• Measures to be taken to reduce and ultimately eliminate the practice of shifting cultivation by tribals that lead to their continuous disempowerment and degradation of land and the environment

Report of the Commission

• Commission presents an annual report to the President. It can also submit a report as and when it thinks necessary.
• President places all such reports before the Parliament, along with a memorandum explaining the action taken on the recommendations made by the Commission. The memorandum should also contain the reasons for the non-acceptance of any of such recommendations.
• President also forwards any report of the Commission pertaining to a State Government to State Governor. Governor places it before State Legislature, along with a memorandum explaining the action taken on the recommendations of the Commission. The memorandum should also contain the reasons for the non-acceptance of any of such recommendations.

Powers of the Commission

• Commission is vested with the power to regulate its own procedure.
• Commission, while investigating any matter or inquiring into any complaint, has all the powers of a civil court trying a suit and in particular in respect of the following matters:
  • Summoning  and enforcing the attendance of any person from any part of India and examining him on oath;
  • Requiring the discovery and production of any document;
  • Receiving evidence on affidavits;
  • Requisitioning any public record from any court or office;
  • Issuing summons for the examination of witnesses and documents; and
  • Any other matter which the President may determine.

Central Government & State Governments are required to consult the Commission on all major policy matters affecting STs.

National Commission for Scheduled Castes

It  is a constitutional body in the sense that it is directly established by Article 338 of the Constitution.

Evolution of the Commission

• Originally, Article 338 of the Constitution provided for the appointment of a Special Officer for Scheduled Castes (SCs) and Scheduled Tribes (STs) to investigate all matters relating to the constitutional safeguards for the SCs and STs and to report to the President on their working
• Later, the 65th Constitutional Amendment Act of 1990 provided for the establishment of a high level multi-member National Commission for SCs and STs in the place of a single Special Officer for SCs and STs. 
• Again, the 89th Constitutional Amendment Act of 2003  bifurcated the combined National Commission for SCs and STs into two separate bodies, namely, National Commission for Scheduled Castes (under Article 338) and National Commission for Scheduled Tribes (under Article 338-A).

Composition

It consists of

1. Chairperson
2. Vice-chairperson and
3. Three  other members.

They are appointed by the President by warrant under his hand and seal. Their conditions of service and tenure of office are also determined by the President.

Functions of the Commission

• To investigate and monitor all matters relating to the constitutional and other legal safeguards for the SCs and to evaluate their working;
• To inquire into specific complaints with respect to the deprivation of rights and safeguards of the SCs
• To participate and advise on the planning process of socio-economic development of the SCs and to evaluate the progress of their development under the Union or a state;
• To present to the President, annually and at such other times as it may deem fit, reports upon the working of those safeguards;
• To make recommendations as to the measures that should be taken by the Union or a state for the effective implementation of those safeguards and other measures for the protection, welfare and socio-economic development of the SCs; and
• To discharge such other functions in relation to the protection, welfare and development and advancement of the SCs as the President may specify.

Report of the Commission

• Commission presents an annual report to the President. It can also submit a report as and when it thinks necessary.
• President places all such reports before the Parliament, along with a memorandum explaining the action taken on the recommendations made by the Commission. The memorandum should also contain the reasons for the non-acceptance of any of such recommendations.
• President also forwards any report of the Commission pertaining to a state government to the state Governor. Governor places it before the state legislature, along with a memorandum explaining the action taken on the recommendations of the Commission. The memorandum should also contain the reasons for the non-acceptance of any of such recommendations

Powers of the Commission

• Commission is vested with the power to regulate its own procedure.
• Commission, while investigating any matter or inquiring into any complaint, has all the powers of a civil court trying a suit and in particular in respect of the following matters:
  • Summoning  and enforcing the attendance of any person from any part of India and examining him on oath;
  • Requiring the discovery and production of any document;
  • Receiving evidence on affidavits;
  • Requisitioning any public record from any court or office;
  • Issuing summons for the examination of witnesses and documents; and
  • Any other matter which the President may determine.

The Central government and the state governments are required to consult the Commission on all major policy matters affecting the SCs.

The Commission is also required to discharge similar functions with regard to  Anglo-Indian Community as it does with respect to the SCs.

Finance Commission

• It deals with Article 280 of Indian constitution 
• It is a  quasi judicial body.
• Constituted by the President  every fifth year or  earlier as he considers necessary.
• Finance Commission consists of a Chairman and four other members 
• Constitution authorises the Parliament to determine the qualifications . Accordingly, Parliament has specified 
  • Chairman: person having experience in public affairs
  • Four other members should be selected from amongst the following:
    • A judge of High Court or one qualified to be appointed as one.
    • A person who has specialised knowledge of accounts of the government.
    • A person who has wide experience in financial matters .
    • A person who has special knowledge of economics.

Functions

Finance Commission is required to make recommendations to the President of India on the following matters:

• Distribution of the net proceeds of divisible pool of taxes to be shared between  Center and states (Vertical Distribution) , and the allocation between states (Horizontal Distribution)
• Principles that should govern the grants-in-aid to the states by the Center
• Measures needed to augment the consolidated fund of a state to supplement the resources of  Panchayats and municipalities
• Any other matter referred to it by the President in the interests of sound finance.

Constitution also allows Finance Commission to make broader recommendations in the interests of sound finance.

The  commission submits its report to President. He lays it before both the Houses of Parliament along with an explanatory memorandum as to the action taken on its recommendations.

Till 1960, the commission also suggested the grants given to the States of Assam, Bihar, Odisha and West Bengal in lieu of assignment of any share of the net proceeds in each year of export duty on jute and jute products. These grants were to be given for a temporary period of ten years from the commencement of the Constitution.

Advisory Nature

• Recommendations made by Finance Commission are only of advisory nature and hence, not binding 
• As rightly observed by Dr. P.V. Rajamannar, the Chairman of the Fourth Finance Commission, “Since the Finance Commission is a constitutional body expected to be quasi-judicial, its recommendations should not be turned down by the Government of India unless there are very compelling reasons”

Finance Commission & Fiscal Federalism

• Constitution envisages the Finance Commission as the balancing wheel of the Fiscal federalism in India.

• Every successive Finance Commission has to do a political balancing act by giving more resources to the states given the growing importance of sub-national governments in the Indian political economy.
  • 1st Finance Commission ( K.C. Neogy)   recommended –  10% Share
  • 14th Finance Commission (Y. V. Reddy) recommended –  42%.

• But at the same time, it also ensures that center is not fiscally constrained given its role in key national public goods such as defence.

15th Finance Commission

Nov 2017 : Government had approved the setting up of 15th Finance Commission  with N.K. Singh as its Chairman. It has been asked to submit its report by 30 October 2019.

Terms of Reference

• Above Terms of References which are same for all Finance Commissions
• Commission is to finalise its tax-devolution formula after factoring in the impact on the Union’s fiscal situation, keeping in mind “the continuing imperative of the national development programme including New India – 2022” and government’s commitment to compensate states’ loss due to GST.
• Finance Commission will also propose performance-based incentives (PBI) in areas such as
  1. Efforts made by the states in expansion and deepening of the tax net under GST
  2. Efforts and progress made in moving towards replacement rate of population growth
  3. Improvement in ease of doing business
  4. Sanitation
  5. Reign in populist measures
  6. Promoting savings through adoption of direct benefit transfers
  7. Promoting a digital economy; etc.

South Indian States vs 15th Finance Commission

• 14th Finance Commission had used both Census 1971 and 2011  for horizontal distribution of taxes among states. Census-1971 population was given 17% weight and 2011 given 10%  
• 15th Finance Commission is ordered to use the Census 2011 data only.

Issue : Southern states believe that the recommendations will not recognise their effort to check population growth, and will impact the transfer of resources. 

Southern States allege that Center is funding Northern States from their taxes. For every 1 ₹ that North Indian States give , they get 3₹ back and for every 1 ₹ that Southern States give , they get 50 paisa .

Election Commission

• Article 324 : Power of superintendence, direction and control of Elections to
  • Parliament
  • State legislatures
  • Office of President of India
  • Office of vice-president of India

shall be vested in the election commission. 

• Note : Election commission is not concerned with the elections to panchayats and municipalities in states. For this, the Constitution of India provides for a separate State Election Commission.

Composition

Article 324 of the Constitution has made the following provisions 

• There shall be Chief Election Commissioner & such number of election commissioners, as the President from time to time fix.
• Appointed by the President subject to the provisions of law made by Parliament
• When any other Election Commissioner is  appointed, Chief Election Commissioner shall act as the chairman of  Election Commission.

Composition of Election Commission (History)

1950 to 15 Oct 1989	Single Body Commission
Oct 1989 to Jan 1990	president appointed two more election commissioners to cope with the increased work of the election commission on account of lowering of the voting age from 21 to 18 years
Jan 1993 to Oct 1993	Again Single Member Body
Oct 1993 to Present	Again 3 Membered Body (Chief Election Commissioner + 2 Election Commissioner)

Terms of Service

• Chief Election Commissioner & two other Election Commissioners have equal powers , salary, allowances and other perquisites, which are similar to  judge of the Supreme Court.
• In case of difference of opinion , matter is decided by the Commission by majority.
• They hold office for a
  • term of six years or
  • until they attain the age of 65 years,

whichever is earlier

Independence

• Chief Election Commissioner is provided with the Security of tenure. He cannot be removed from his office except in same manner and on the same grounds as a judge of the Supreme Court.

• Service conditions of the Chief Election Commissioner cannot be varied to his disadvantage after his appointment.

• Any other Election Commissioner or Regional Commissioner can’t be removed from office except on recommendation of Chief Election Commissioner

Hierarchy

Central Level	Election Commission
State	Chief Electoral Officer (CEO) – Appointed by Chief Election Commissioner in consultation with state government
District	District Collector acts as District Returning Officer

Issue regarding Process of selection of Election Commissioners

• Constitutional Assembly Debates : Prof Shibban Lal stressed that Election Commissioner should be appointed by 2/3rd majority of both the houses because of the importance of functions
• Article 324 (2) : Election Commissioner to be appointed by President subject to the provisions of law made by Parliament
• 1974 : VM Tarkunde Panel recommended that Election Commissioner should be appointed by President on advice of Panel consisting of Prime Minister & Leader of Opposition 
• 2nd Administrative Reforms Commission reiterated the same recommendations

Presently, Act has not been made . As a result following issues come

• Chief Election Commissioner & Election Commissioner are appointed by President on advise of Council of Ministers
• Election Commissioners don’t enjoy security of tenure and can be removed just on recommendation of Chief Election Commissioner
• Constitution has not prescribed the qualifications (legal, educational, administrative or judicial) of the members 
• Constitution has not debarred the retiring Election Commissioners from any further appointment by the government.

Two Public Interest Litigations in this regard

• Oct 2018 : Public Interest Litigation in Supreme Court regarding  collegium-like system for the selection of the Chief Election Commissioner & Election Commissioner which has been referred to 5 judge bench.
• 2017 :  PIL filed in Supreme Court  contending that successive governments have failed in the constitutional obligation to set up a fair, just and transparent process for selection of Election Commissioners.

Powers and functions

The powers and functions of the Election Commission with regard to elections to the Parliament, state legislatures and offices of President and Vice-President can be classified into three categories, viz,

• Administrative
• Advisory
• Quasi-Judicial

Powers and Functions of Election Commission as follows

1. To determine the territorial areas of the electoral constituencies throughout the country on the basis of the Delimitation Commission Act of Parliament.
2. To prepare and periodically revise electoral rolls and to register all eligible voters.
3. To notify the dates and schedules of elections and to scrutinise nomination papers.
4. To grant recognition to political parties and allot election symbols to them.
5. To act as court for settling disputes related to granting recognition to political parties & allotment of election symbols to them.
6. To appoint officers for inquiring into disputes relating to electoral arrangements
7. To determine the code of conduct to be observed by the parties and the candidates at the time of elections.
8. To prepare a roster for publicity of the policies of the political parties on radio and TV in times of elections.
9. To advise the President on matters relating to the disqualifications of the members of Parliament.
10. To advise the Governor on matters relating to the disqualifications of the members of state legislature.
11. To cancel polls in the event of rigging, booth capturing, violence and other irregularities.
12. To request the president or the governor for requisitioning the staff necessary for conducting elections.
13. To supervise the machinery of elections throughout the country to ensure free and fair elections.
14. To advise the President whether elections can be held in a state under president’s rule in order to extend the period of emergency after one year.
15. To register political parties for the purpose of elections and grant them the status of national or state parties on the basis of their poll performance

Demands of Reforms by Election Commission

1 . Constitutional Protection

• It has demanded for constitutional protection for all three of its members as opposed to just one at present.
• Its two Election Commissioners can be removed by the government on the recommendation of the Chief Election Commissioner

2 . Contempt Powers

• Election Commission of India  urged Law ministry to amend election laws to give Contempt powers to Election Commission against parties making unfounded allegations.

3 . Elevation to Chief Election Commissioner of seniormost Election Commissioner

• Provision either in law or by  resolution that senior most Election Commissioner should be automatically elevated as Chief Election Commissioner

4 . Financial Freedom

• Like the CAG and UPSC, Election Commission of India wants its budget to be ‘charged’ on the Consolidated Fund
• Current practice – Voted and approved by Parliament. 

5 . Independent Secretariat

• Election Commission of India  should have  independent secretariat so that it will not have to depend on Department of Personnel and Training to appoint its officers. 

6 . More teeth to tackle new challenges

• Election Commission of India sought amendment to Representation of People Act to include specific powers to postpone or countermand polls on the grounds of use of money power. 
• At present, there is no specific provision in the law to this effect and commission has to resort to extraordinary powers under Article 324 of constitution which, it feels should be used sparingly.  Clause 58 A empowers the Election Commission to cancel polls only if there is an evidence of boothcapturing or use of muscle power. Thus, Election Commission seeks a new clause ‘58 B’ in the Act for dealing with use of money power in elections or amendment to this effect in the existing clause ‘58A’.

7 .  Fair election

• The section 126 of Representation of People Act currently prohibits publication of ads by political parties in electronic media (TV, radio) and recently added social media, 48 hours before voting ends.  Election Commission of India wants print media to be included in Section 126 of the RP Act. 
• Disqualification of a candidate from contesting elections if a court has framed charges against him. Currently a candidate is disqualified if convicted for crime bearing sentence more than 2 years.
• Election Commission of India also supports making paid news an electoral offence punishable by two years of imprisonment.

8 . Voting Procedure

• Election Commission of India seeks to introduce totalizer machines for counting of votes.

Special Category States

This article deals with ‘Special Category States.’ This is part of our series on ‘Polity’ which is important pillar of GS-2 syllabus . For more articles , you can click here

Background

• Constitution didn’t has concept of Special Category State. Concept of a special category state was first introduced in 1969 by the 5th Finance Commission
• Rationale  for special status was that certain states, because of inherent features, have a low resource base and cannot mobilize resources for development. 
• The decision to grant special category status was earlier with National Development Council.
• Initially  Special Category Status was given to 8 North East States. Now 3 more added and they are 11 .

To whom it is accorded

• Hilly and difficult terrain
• Low population density or sizable share of tribal population
• Strategic location along the borders with neighbouring countries.
• Economic and infrastructural backwardness
• Non-viable nature of finances (based on this Andhra Pradesh is demanding Special Category Status)

Benefits to Special Category States (SCS) – Based on Gadgil Mukherjee Formula

• The nature of benefits to Special Category States create further demand by many states to crave for this status. The major benefits of  Special Category States
  • Finance Commission : Extra Weightage in Tax Sharing and Grants given to Special Category States . But 14th Finance Commission has stopped this
  • Centrally Sponsored Schemes : In case of Core Schemes, Division of 90:10 whereas in other cases 60:40.
  • Unspent money is carried forward and doesn’t lapse .
  • Government gives various perks so that industry is setup in these states like Tax Breaks . In GST , special consideration can be given in rates
  • Planned Assistance : Extra funds were given to these states for implementation of Union Five Year Plan . In this, 90% was given as Grant and 10% as loans (compared to normal states with 70% grants and 30% loans)
  • Central Assistance to State’s own Five Year Plan  in accordance to Gadgil Mukherjee Formula

Issues with the working of Special Category Status

• Firstly, the way Special Category Status are assigned to a state has been a matter of debate. States lobby central government to classify them in special category. 

• Aid Curse : From the earlier experience, there is no guarantee that even after awarding Special category status, economic progress will take place.  For economic development, it is important to follow sound economic policies. 

• After 14th finance commission’s recommendations have been accepted, Special Category State status has lost relevance altogether.

Special Category Status: recent approach of government

• Finance Commission has stopped extra weightage given to Special Category States in Horizontal Division of devolved funds
• Planning Commission and Five Year Plans have been removed all together

Way ahead :  Raghuram Rajan Committee’s (2013) proposal for Multi-Dimensional Index (MDI)  (based on 10 factors like Health, Education, Poverty rate etc) dividing states into three categories

• Relatively Developed
• Less Developed
• Least Developed

And based on this, different benefits should be given to states

NITI Aayog

• NITI Aayog = National Institution for Transforming India
• formed via a resolution on January 1, 2015.
• Premier policy ‘Think Tank’ of the Government of India
• Fostering the spirit of cooperative federalism.

Members

Structure of NITI Aayog

• NITI Aayog  = Planning Commission + National Development Council (State’s CM and UT Lt Governors included within policy making)
• Regional Councils : NITI Aayog has Regional Councils too .  Regional Councils will have Chief Ministers of states that fall in the region & will  be dealing with specific issue concerning a group of states for example irrigation, naxal-problem, infrastructure etc.

Mandate of NITI Aayog

1. Think tank for Government policy formulation.
2. Cooperative Federalism: Involve state governments and even villages in planning process.
3. Documenting best practices from other countries,  help their adoption in India.
4. Sustainable development
5. Monitoring and feedback : Will help in Midway course correction, if needed.

Difference with Planning Commission

• Functions : It  has a structure similar to the Planning Commission, but its functions will be limited to only acting as a policy think-tank relieving it of the two more functions viz. formation of five year plans and allocation of funds to the States.
• Involvement of States in Policy Making : – NITI will have greater involvement of the states  , while in case of Planning Commission , it was Minimal . 
• Development Approach :  Planning Commission  took a top-down approach with a one-size-fits-all plan but NITI Aayog has bottom up approach from village to state to union and give enough maneuvering space to States  .

Significance / Assessment of NITI Aayog

• Cooperative Federalism : Due to its composition, NITI Aayog gives better representation of states which facilitates direct interactions

• NITI Aayog has come up with Perspective Document which has three parts and this is the biggest achievement as now country has  Vision what policy makers have to achieve in long term as well as short term
  • Vision Document : For 15 Years (keeping in view SDG 2030)
  • Strategy Document : For 7 Years
  • Action Agenda : For 3 Years (from 2017-20)

• Sectoral Works : NITI Aayog has done various works in various sectors

Agriculture	– Model Law on Agricultural – Produce & Livestock Marketing (APLM) Act – Land Leasing : Came up with Land Leasing Model Act  – Index : Came up with Agricultural Marketing and Farmer Friendly Reform Index
Health	Recommended abolition of Medical Council of India and to be replaced by  National Medical Commission
Innovation	– Came up with various schemes to promote innovation and startups like AIM (Atal Innovation Mission)
Digital Payment Promotion	Started various schemes like Digi Dhan Yojana, Lucky Grahak Yojana etc

• Indexes/ Competitive Federalism : Various Indexes have been started . Main Indexes started are in following Areas .
  • Water
  • Agri Related
  • Ease of Doing Business

• Focus on inclusive development:
  • Started initiative focusing on transformation of 115 aspirational districts.
  • It is also the nodal body for monitoring implementation of Sustainable Development Goals

• Knowledge and Innovation hub: It acts as a Repository of information => best practices around world

Challenges

• Created by Executive Order and doesn’t have Statutory or Constitutional backing.
• Functions overlap with Constitutional Bodies like Inter State Council
• Favour advanced states: Its promotion of competitive federalism may work in favour of already advanced states to the detriment of others.
• Limited focus on implementation : Just Policy Think Tank with less focus on implementation
• Old Wine in New Bottle : Nothing revolutionary different from Planning Commission
• Lack of decentralization power : One of the envisaged goals of the NITI Aayog was to develop mechanisms to formulate credible plans at the village level and aggregate these progressively at the higher level. Very little of this cherished goal has indeed been accomplished.

Inter-state Councils, Inter-state Trade, Zonal Council and North East Council

Inter State Councils

Article 263

• President can establish Inter State Council to effect coordination between states & states and centre if it appears to him that Public Interest would be served by establishment
• Under this provision ,councils established
  • Central Council on health
  • Central Council of local governance
  • Four regional council for sales tax for north,south,east& west

Establishment of Inter State Council

• Sarkaria Commission recommended its formation
• Janata Dal government under VP Singh formed this in 1990 under Article 263
• Consist of

Chairman	Prime Minister of India
Members	– Chief Minister of States & Union Territories having Assembly – Administrators of rest of Union Territories – Governors of states under Presidents rule – Six central Ministers including Home Minister to be nominated by Prime Minster

• Functions to be performed – mandated by constitution
• May meet atleast thrice a year
• Ninth meet held in 2005 & 10th in 2006 . After that it didn’t meet for a decade and became defunct. Atlast it is again revived in 2016
• In 10 previous meetings took important decisions like approving alternate scheme of devolution, time bound clearance of state bills referred  to President

Significance of Inter State Council

• Constitutional Backing : Although, there are other bodies such as the NITI Aayog’s Governing Council-having a similar composition . But the Inter State Council has constitutional backing  This puts the states on more solid footing
• Punchhi Commission also recommended to use Inter State Council  to resolve Inter State  & Center State issues instead of going for long litigations in the courts 
• Will help in strengthening Cooperative Federalism
• Safety valve-  council helps to bridge the trust deficit between  center and  states. If not  a problem solver, it  at least act as a safety valve

Issues with Inter State Council

• Seen merely as a place to discuss without any follow up
• Recommendations are not binding /advisory in nature
• Doesn’t meet regularly. Met after decade  in 2016

Need to strengthen  Inter State Council

1. Should meet regularly
2. It’s secretariat should be shifted from  Union Home Ministry to Rajya Sabha secretariat so that it would be under the direction of a neutral federal functionary, the vice-president of India rather than Union home minister.
3. Should be used while going for Treaty Making to take States whose interests are going to be impacted onboard (even suggested by Punchhi Commission)
4. Punchhi commission recommendations
   • Should meet thrice a year 
   • Should have experts drawn from law, management, pol sci apart from IAS
   • Functional Independence with a professional secretariat 

Public Acts, Records & Judicial Proceedings

• Jurisdiction of each state is confined to territorial limits of each state
• Hence , acts and records of one state may not be recognised by other state

For this, there is FULL FAITH & CREDIT CLAUSE which lays down following

• Full faith and credit to  be given to public records and acts  of centre and all states through out India

Public act	Legislative & Executive acts
Public records	Official books, registers or record made by public servant

• Final judgements and orders of Civil Courts  in any part are capable of execution anywhere within India

Inter State Trade & Commerce

Free flow of trade without geographical barriers is sine quo non for economic prosperity . Our Federal Constitution guarantees it . We have arrangement that harmonise & facilitate Inter State trade and commerce

Constitution

• Article 301 to 307 of  Part XIII of Indian Constitution deals with this.
• Constitution has taken National Interest as whole as well as interests of Particular State

Article 301

• Trade ,commerce and intercourse throughout territory of India shall be free
• To breakdown border barriers between the states

Article 302 to 305

Deals with restrictions to Article 301

1. Article 302: Parliament can impose restrictions on freedom of trade between states  or within state in Public Interest (there may be plenty of food in one part while famine in other. If parliament has no power to check these abnormal situations then freedom of trade will become menace to freedom of life itself)
2. Article 303 –  BUT in imposing restrictions  cant give preference to one state over other except in case of scarcity of goods in any part of country ( ie in case of famine etc can even pass discriminatory law)
3. State Legislature   can impose restrictions on freedom of trade with state  or within state in public interest . BUT
   1. Cant give preference to one state over other
   2. Bill can be introduced in assembly with previous sanction of President
   3. This give power to review that whether restriction is reasonable or not & declare it invalid if it is unreasonable
4. Legislature of State can impose any tax on goods imported from other state similar to tax on goods manufactured in that state are subjected
5. Freedom under Article 301 is subject to Nationalisation laws
6. Parliament is empowered to appoint such authority as it considers appropriate for carrying out purposes of Article 301 to 304 and confer it such powers as it thinks necessary . But no such authority has been appointed so far (Ambedkar envisaged  for authority such as Inter State Commission of USA)

Zonal Councils

• Zonal Councils are Statutory body
• Made under State Reorganisation Act,1956

Provisions of Act

• Act divided country to 5 Zones – Northern , Central , Southern, Eastern, Western
• Provided Zonal Council for each zone
• Each Zonal Council would consist of
  • Home Minister as Chairman
  • Chief Minister of all states in zone
  • Two other ministers from each state
  • Administrator from Union Territories

Aim

• To achieve emotional integration of country
• Help arresting growth of regionalism,linguism etc
• Removing after effects of separation in case of reorganisation
• Enable states and centre to cooperate on social and economic issues
• Secure political equilibrium between states

Criticism of Zonal Councils

• Don’t meet frequently as may be required
• Most of states are reluctant to implement decisions taken at these meetings

North East Zonal Council

• North East Zonal Council is a Statutory body
• It is created under provisions of North Eastern council Act,1971.
• Members (8) = Assam, Manipur, Mizoram, Arunachal Pradesh, Nagaland, Meghalaya , Tripura & Sikkim.
• Objectives : Same as zonal councils  +review from time to time the measures taken by member states for maintenance of security and public order in region