Cooperative Federalism

PRAGATI PLATFORM: PRO-ACTIVE GOVERNANCE AND TIMELY IMPLEMENTATION

The PRAGATI platform, an ICT-based multi-modal system chaired by the Prime Minister, accelerates stalled mega-infrastructure projects and resolves citizen grievances. Utilizing geo-spatial tech and video-conferencing, it strengthens cooperative federalism, recently fast-tracking ₹30,000 crore projects in its 52nd meeting.

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ECOLOGICALLY SENSITIVE AREA (ESA): STRIKING A BALANCE BETWEEN ECOLOGY AND DEVELOPMENT

The Central Government's push to designate 56,825 sq km of the Western Ghats as an Ecologically Sensitive Area (ESA) faces fierce state opposition. Balancing deep-ecology conservation against local livelihood concerns remains critical for securing India's climatic and hydrological future.

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PM SHRI SCHEME EXPLAINED: FEATURES, SIGNIFICANCE, CHALLENGES, WAY FORWARD

The PM SHRI scheme develops fourteen thousand five hundred schools into exemplar institutions showcasing the National Education Policy. It features green infrastructure and modern pedagogy but faces implementation challenges due to funding and branding disputes with several participating Indian states.

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NITI AAYOG EXPLAINED: EVOLUTION, FUNCTIONS, LIMITATIONS, WAY FORWARD

NITI Aayog shifted India toward bottom-up governance and competitive federalism. To achieve Viksit Bharat @2047, it must transcend its "think tank" role, addressing fiscal limitations and state-specific aspirations while evolving into a "do tank" for deep structural reforms. 

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FISCAL HEALTH INDEX 2026 BY NITI AAYOG

 NITI Aayog’s Fiscal Health Index 2026 assesses states’ finances, grouping them as Achievers or Aspirational. It warns that weak revenue mobilisation, rising committed expenditure, and poor transparency threaten stability. Examples like Odisha’s improvement and Punjab’s stress highlight the need for fiscal discipline and FRBM adherence.

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DISASTER JUSTICE: MEANING, SIGNIFICANCE, CHALLENGES, WAY FORWARD

Kerala’s decision to waive ₹18.75 crore in loans for Wayanad landslide survivors signals a shift toward financial rehabilitation. It addresses post-disaster debt traps, contrasts State welfare with rigid national frameworks, and highlights the need for catastrophe insurance and reforms to strengthen disaster justice and recovery systems.

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HIGHLIGHTS OF THE 16TH FINANCE COMMISSION RECOMMENDATIONS

The 16th Finance Commission backs 41% vertical devolution but reshapes horizontal criteria by adding States’ GDP contribution, balancing equity with performance. It proposes fiscal discipline through curbing off-budget borrowings, subsidy sunset clauses, and power reforms, while flagging cesses and surcharges as a key challenge to cooperative federalism.

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FISCAL FEDERALISM IN CRISIS: HOW BUDGET 2026-27 BURDENS THE STATES

Budget 2026–27 exposes strains in India’s fiscal federalism as the Centre retains policy control while shifting welfare costs to States through unfunded mandates and CSS changes. Non-shareable cesses shrink States’ revenues, social spending stagnates, and a capex-first approach sidelines human capital, prompting calls to rationalise cesses and revive cooperative federalism.

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TEX-RAMPS SCHEME: FEATURES, IMPACT, CHALLENGES, WAY FORWARD

The Tex-RAMPS Scheme is a new initiative with a ₹305 crore budget (FY 2025-2031) to boost textile sector through research, innovation, data, and supporting startups, aiming to enhance global competitiveness in sustainability and technology, addressing gaps in the ecosystem for future growth

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PRAGATI: TRANSFORMING GOVERNANCE THROUGH TECHNOLOGY

The PRAGATI, launched in 2015 by the Prime Minister’s Office, uses data analytics, geospatial tools, and video conferencing to fast-track projects and resolve grievances. It strengthens cooperative federalism and accountability, though concerns over centralisation and data reliance persist.

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MEKEDATU DAM PROJECT DISPUTE EXLAINED

The Mekedatu dam dispute highlights Karnataka’s push for drinking water and hydropower versus Tamil Nadu’s fears of reduced flow and legal violations. Environmental concerns in the Cauvery Wildlife Sanctuary add pressure. With the Supreme Court involving the CWMA, resolution depends on cooperative federalism and sustainable urban water options.

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ZONAL COUNCILS: ROLE, CHALLENGES, AND WAY FORWARD

Zonal Councils, created under the 1956 Act, promote cooperative federalism by resolving inter-state disputes, coordinating security and supporting regional development. Their impact remains limited by irregular meetings and weak follow-up. Strengthening them through regular reviews and better implementation, as recommended by major commissions, can improve cooperation.

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