Federal structure- Union and states Flashcards
J&K Reservation Bill?
- Bill partially amends a Presidential Order of 1954 in order to amend the state’s Reservation Act.
- aims to extend the reservation in appointments and promotions for state government posts to socially and educationally backward classes.
- The bill paves the way for people living near the International Border in J&K to get the benefit of reservation in jobs, promotion and educational institutions on par with those living along the Line of Actual Control (LoAC).
- The compulsory seven-year service for those appointed on the basis of residence near the LoAC will also be applicable to people near the International Border.
- Socially and educationally backward people with annual incomes above three lakh rupees cannot apply for reservations. However, this limit does not apply to people living near the LoAC and the new bill includes people residing near the International Border in this exemption.
Legalities of J&K reorganisation?
- Main players:
- Presidential order Consti Order 272: to supersede the 1954 order related to Article 370; seeks to abrogate Art 370
- Art 370 (1)(d): constitutional provisions could be applied to the state of J&K from time to time, as modified by the President through a Presidential Order, and upon the concurrence of the state government
- Art 370 (3) : authorised the President to pass an order removing or modifying parts of Article 370 provided pre-recommendation of Constituent Assembly of J&K
- Art 367: provides various guidelines about how the Constitution may be interpreted
- Art 370 (1)(c): “notwithstanding anything contained in this Constitution, the provisions of Article 1 and this Article shall apply in relation to that State” which effectively makes clear that the power of the President to amend provisions of the Constitution in relation to Jammu and Kashmir does not extend to Article 1 and Art 370 itself
- What happened?
- Using 370 (1) (d), GoI added an additional clause to Art 370, when applying to J&K, that said that ‘CA in clause 2 shall mean Legislative Assembly of the state’
- And since J&K is under Prez’s rule, SL’s powers are with Parliament.
- The statutory resolution was passed that advised Prez to abrogate all of Art 370 bar Art 370 (1)(d)
- Scrapping of Presidential Order of 1954 also means that the provision of Art 3, that reqd consent of SL of J&K fr altering the area or boundary, stands null and void
- removal of the 1954 Order further also negates a clause which was added to Article 352 that sought SG’s concurrence for proclaiming Emergency on grounds of “internal disturbance or imminent danger thereof”
- Issues:
- Art 370 (1)(c) restricts Prez’s powers to amend Art 370 itself; SC has held on multiple occasions, you cannot do indirectly what you cannot do directly.
- In art 370(1)(d), consent of SG is reqd; but in present circumstances, it means CG taking its own consent to amend the Constitution
- President’s Rule is meant to be a stand-in until the elected government is restored. Consequently, decisions of a permanent character taken without the elected legislative assembly, but by the Governor, are inherently problematic
Police and Public order after the abrogation of Art 370?
now, in J&K UT, it rests with CG
“15th FC recommendations fail in the recognition of the third tier”: intro?
This Commission is the fifth after the incorporation of Part IX and Part IX-A to the Constitution which mandate the Union Finance Commission to supplement the resources of panchayats and municipalities on the basis of the recommendations of the State Finance Commission (another institution created by the Amendments).
“15th FC recommendations fail in the recognition of the third tier”: positive aspects?
- vertical devolution recommended to local governments is raised remarkably high.
- From a measly share of 0.78% of the divisible pool with an absolute sum of ₹10,000 crore by the Eleventh Commission, the Fifteenth Finance Commission raised it to 4.23% with a reasonably estimated amount of ₹4,36,361 crore.
- Compared with the Fourteenth Finance Commission there is a 52% increase in the vertical share.
- Even if we deduct the grant of ₹70,051 crore earmarked for improving primary health centres, the share is still an all-time high of 4.19%.
“15th FC recommendations fail in the recognition of the third tier”: issues?
- All the Commissions since the 11th FC have tied specific items of expenditure to local grants and the 15th FC has raised this share to 60% and linked them to drinking water, RW harvesting, sanitation etc.
- It reduced the performance-based grant to just ₹8,000 crore — and that too for building new cities, leaving out PRIs altogether
- performance-linked grants thoughtfully introduced by the Thirteenth Finance Commission earmarked 35% of local grants specifying six conditions for panchayats and nine for urban local governments and covered a wide range of reforms eg. establishment of an independent ombudsman
- An important recommendation of the 15th FC is the entry-level criterion to avail the union local grant (except health grant) by local govt. For panchayats, the condition is online submission of annual accounts for the previous year and audited accounts for the year before. Gram panchayats (incl the affluent and semi-urban categories) are left out from this.
- Although the 15th FC outlines nine guiding principles as the basis of its recommendation to local governments, there is no integrated approach. It is forgotten that public finance is an integrated whole.
- 15th FC employed population (2011 Census) with 90% and area 10% weightage the same criteria followed by 14th FC. While this ensures continuity, equity and efficiency criteria are sidelined.
Government of NCT of Delhi (Amendment) Act, 2021: provisions?
- term “government” referred to in any law made by will imply LG
- allows LA make Rules to regulate the procedure and conduct of business in the Assembly, but consistent wiht rules of procedure of LS
- prohibits LA to enquire into matters of day-to-day admin of NCT or into any administrative decision
- requires the LG to reserve certain Bills passed by LA for consideration of Prez
- which may diminish powers of Delhi HC
- Prez may direct to be reserved
- dealing with salaries of Spkr, Dy spkr, ministers amd MLAs
- official lang of assembly or NCT
- any other bill that concerns matter outside the purview of powers of LA
- seeks to ensure that the LG is “necessarily granted an opportunity” to give her/his opinion before any decision taken by the Council of Ministers (or the Delhi Cabinet) is implemented.
- after SC’s 2018 verdict, the elected government had stopped sending files on executive matters to the LG before the implementation of any decision.
- But the amendment, if cleared, will force the elected government to take LG’s advice before taking any action on any cabinet decision.
formation of NCT?
Delhi’s current status as a Union Territory with a Legislative Assembly is an outcome of the 69th Amendment Act through which Articles 239AA and 239BB were introduced in the Constitution.
The Government of National Capital Territory of Delhi (GNCTD) Act was passed simultaneously to supplement the constitutional provisions relating to the Assembly and the Council of Ministers in the national capital.
For all practical purposes, the GNCTD Act outlines the powers of the Assembly, the discretionary powers enjoyed by the LG, and the duties of the Chief Minister with respect to the need to furnish information to the LG.
LG vs elected govt in NCT: court’s opinions?
- In its 2018 verdict, the five-judge Bench had held that the LG’s concurrence is not required on issues other than police, public order and land.
- It had added that decisions of the Council of Ministers will, however, have to be communicated to the LG.
- Art 239 had to be read in the “spirit of citizenry participation in the governance of a democratic polity that is republican in character”
- The LG was bound by the aid and advice of the CoM. LG had no independent decision makin power
- court also said that the status of the LG of Delhi is not that of a Governor of a State, rather he remains an Administrator, in a limited sense, working with the designation of Lieutenant Governor”.
- It had also pointed out that the elected government must keep in mind that Delhi is not a state.
- while any matter of dispute can be sent to Prez, it doesn’t mean every matter shud be. even in case of difference of opinion with the CoM, the LG would have to meet “the standards of constitutional trust and morality, the principle of collaborative federalism and constitutional balance [and] respect for a representative government”
15th FC: intro?
- chaired by NK Singh
- submitted two reports:
- first report fr recommendations for 2020-21
- final report with recommendations for the 2021-26 period: to be submitted in Oct 2020
- ToR: shift to 2011 pop
- Main points:
- main recommendations fr devolution
- Grants-in-aid
- local bodies related
- disaster risk management
15th FC Provisional report 2020-21: main recommendation wrt devolution?
- Vertical: reduced states’ share to 41% frm 42% by 14th FC coz of J&K reorganisation
- Horizontal: criterias:
-
Need-based criteria
-
Population: used only the Population of 2011- weightage 15%
- 14th FC had introduced 2011 pop criteria: 17.5% (1971 pop) and 10% (2011 pop)
- area: same as 14th FC: weightage 15%
-
forest and ecology: weightage 10%
- arrived at by calculating the share of dense forest of each state in the aggregate dense forest of all the states.
- changed the criteria of ‘forest cover’ in 14th FC with weightage 7.5%; this criteria was introduced by 14th FC
-
Population: used only the Population of 2011- weightage 15%
-
Equity based criteria:
-
income distance: reduced the weightage frm 50% (14th FC) to 45% (15th FC)
- Income distance is the distance of the state’s income from the state with the highest income.
- The income of a state has been computed as average per capita GSDP during the three-year period between 2015-16 and 2017-18
- was 62.5% in 11th FC, 50% in 12th FC and NOT there in 13th
- 13th FC instead used Fiscal capacity Index (47.5%)
-
income distance: reduced the weightage frm 50% (14th FC) to 45% (15th FC)
-
Performance-based criteria:
-
Demographic Performance: 12.5% weightage
- This criterion of demographic performance is computed by using the reciprocal of TFR of each State, scaled by the population data of Census 1971
- introduced by 15th FC
-
Tax Effort: 2.5% weightage
- computed by taking the ratio of the average of per capita own tax revenue of a State over three years and its per capita GSDP and scaling this ratio by the population of the State.
- re-introduced by 15th FC; was also used by 11th and 12th FC
-
Demographic Performance: 12.5% weightage
15th FC Provisional report 2020-21:: Grants in Aid?
proposed a framework for sector-specific and performance-based grants.
- Revenue deficit grants: fr 14 states (expected to have RD of >74000cr in 2020-21 post devolution)
- Special grants: to 3 states, KN, MZ and Telangana
- Sector specific grants:
- nutrition
- health
- pre-primary education
- judiciary
- rural connectivity
- railways
- police training
- housing
- performance based grants:
- implementation of agricultural reforms
- development of aspirational districts and blocks
- power sector reforms
- enhancing trade including exports
- incentives for education, and
- promotion of domestic and international tourism
15th FC Provisional report 2020-21:: grants to local bodies?
- total grants to LBs fr 2020-21 90000cr of which 67% fr rural and 33% fr urban
- This allocation is 4.31% of the divisible pool. This is an increase over the grants for local bodies in 2019-20, which amounted to 3.54% of the divisible pool (87000cr)
- grants will be divided between states based on population and area in the ratio 90:10.
- The grants will be made available to all three tiers of Panchayat- village, block, and district.
- Some significant changes made by XV-FC compared to previous Finance Commissions:
- To recommend grants to all tiers of the Panchayati Raj
- To give grants to the Fifth and Sixth Schedule areas and Cantonment Boards.
- To provide for tied grants in the critical sectors of sanitation and drinking water to ensure additional funds to the local bodies over and above the funds allocated for these purposes under Swachh Bharat and Jal Jeevan missions
- fifty Million-Plus cities in the country need differentiated treatment, with special emphasis on meeting the challenges of bad ambient air quality, groundwater depletion and sanitation.
15th FC Provisional report 2020-21:: disaster Risk management?
- Commission recommended setting up National and State Disaster Management Funds (NDMF and SDMF) for the promotion of local-level mitigation activities.
- recommended the creation of funds for disaster mitigation along with disaster response, which will now together be called as National Disaster Risk Management Fund (NDRMF) and State Disaster Risk Management Funds (SDRMF).
- NDRMF: 12000cr+
- SDRMF: 29000cr of which 20%fr mitigation and 80% fr response
- Allocations for NDRF / SDRF will be further sub-divided into
- Response and Relief – 40 per cent
- Recovery and Reconstruction – 30 per cent
- Capacity Building – 10 per cent
15th Finance Commission (FC) recommendations for 2021-2026: main headings?
- Vertical devolution
- Horizontal devolution
- revenue deficit grants to states
- Performance based incentives
- Fiscal space for centre
- Local Govt
- Disaster Risk Mgmt
- Fiscal Roadmap suggestions