Double-Engine Governments: Impact on Federalism, State Autonomy, and Economic Growth
Debate on double-engine governments, federalism, state autonomy, and economic development.
Photo by Aquib Akhter
Editorial Analysis
The idea of 'double engine' governance undermines federalism and can lead to biased treatment of non-NDA states.
Main Arguments:
- The 'double engine' concept undermines federal accommodation.
- It implies bias against non-BJP/non-NDA governments.
- It pits efficiency against democracy.
- Fiscal autonomy of states is shrinking due to various factors, not just the 'double engine' setup.
Counter Arguments:
- Proponents argue 'double engine' governments enhance efficiency in Centre-State relations.
Conclusion
Policy Implications
The article discusses the concept of 'double-engine' governments (same party ruling at the Centre and State) and its implications for Indian federalism and State autonomy. It features a conversation between Louise Tillin and Yamini Aiyar, moderated by N. Sai Charan.
Key points include: the idea of 'double engine' undermines federal accommodation, potentially creating bias against non-NDA states in fund allocation. While Finance Commission transfers are generally unbiased, discretionary transfers like Centrally Sponsored Schemes (CSS) may face delays for Opposition-ruled states. States are experiencing shrinking fiscal autonomy due to GST and new cesses.
The 14th Finance Commission's recommendations to enhance devolution and address CSS inefficiencies were ignored. Southern states' socio-economic success, despite not having 'double-engine' governments, demonstrates that factors like historical context and political mobilization play a significant role in growth. Deeper federalism is crucial for cooperative fiscal bargaining.
Key Facts
A 'double-engine' government refers to the same political party ruling at both the Centre and in a State.
Critics argue that the 'double engine' concept undermines federalism.
Opposition-ruled States complain about delays or non-payment of matching funds for Centrally Sponsored Schemes (CSS).
The 14th Finance Commission pushed for enhanced devolution of the divisible pool of taxes to States.
The Modi government dismantled the Planning Commission, claiming that allocation of funds was centralizing.
UPSC Exam Angles
GS Paper II: Federalism, devolution of powers and finances
Connects to syllabus topics on Centre-State relations, constitutional bodies
Potential for analytical and statement-based questions in Prelims
More Information
Background
Latest Developments
Frequently Asked Questions
1. What is a 'double-engine' government, and why is it a topic of discussion?
A 'double-engine' government refers to a situation where the same political party is in power at both the central and state levels. It's a topic of discussion because of debates around its impact on federalism, state autonomy, and equitable resource allocation.
2. How does the concept of 'double-engine' governments relate to Indian federalism?
Critics argue that the 'double-engine' concept can undermine federalism by creating a bias in favor of states ruled by the same party as the Centre, potentially affecting resource allocation and policy implementation. This can lead to concerns about fairness and equity among states.
3. What are Centrally Sponsored Schemes (CSS), and why are they relevant to the discussion on 'double-engine' governments?
Centrally Sponsored Schemes (CSS) are programs funded by the central government but implemented by the states. They are relevant because Opposition-ruled states often complain about delays or non-payment of matching funds for these schemes, raising concerns about potential bias in fund allocation under a 'double-engine' system.
4. What was the 14th Finance Commission's recommendation regarding devolution of taxes to States?
The 14th Finance Commission recommended enhanced devolution of the divisible pool of taxes to States. This means a larger share of central taxes would be given to the states, increasing their financial autonomy.
5. What are the arguments for and against 'double-engine' governments?
Arguments for include smoother coordination and faster implementation of policies. Arguments against include potential bias in resource allocation, undermining federalism, and reduced autonomy for states not aligned with the ruling party at the Centre.
6. How has GST impacted the fiscal autonomy of States in India?
GST has significantly altered the fiscal relationship between the Centre and the States. While it aimed to create a unified national market, it also reduced the fiscal autonomy of the States, as they now have less control over their tax revenues.
7. What are the key concerns raised regarding the allocation of funds to states under 'double-engine' governments?
Key concerns include potential delays or non-payment of matching funds for Centrally Sponsored Schemes (CSS) to Opposition-ruled states, suggesting a possible bias in resource allocation. This raises questions about fairness and equitable treatment of all states.
8. What is the historical background of federalism in India?
The Government of India Act, 1935 laid the groundwork for a federal structure, although it was limited. After independence, the Constitution of India adopted a federal system, dividing powers between the Union and the States. This division is enshrined in the Seventh Schedule of the Constitution.
9. How did the dismantling of the Planning Commission impact the relationship between the Centre and the States?
The Modi government dismantled the Planning Commission, claiming that allocation of funds was centralizing. This move altered the dynamics of resource distribution, potentially affecting state autonomy and development planning.
10. What are some potential reforms to ensure fair resource allocation between the Centre and States, regardless of the ruling party?
Reforms could include strengthening the role and recommendations of the Finance Commission, ensuring transparency and objectivity in the allocation of funds for Centrally Sponsored Schemes (CSS), and promoting greater consultation and cooperation between the Centre and States on fiscal matters.
Practice Questions (MCQs)
1. Consider the following statements regarding the Finance Commission in India: 1. It is a constitutional body established under Article 280 of the Constitution. 2. Its recommendations are binding on the Union Government. 3. It determines the distribution of net proceeds of taxes between the Union and the States. Which of the statements given above is/are correct?
- A.1 and 2 only
- B.1 and 3 only
- C.2 and 3 only
- D.1, 2 and 3
Show Answer
Answer: B
Statement 1 is CORRECT: The Finance Commission is indeed a constitutional body established under Article 280 of the Constitution. Statement 2 is INCORRECT: The recommendations of the Finance Commission are advisory in nature and not binding on the Union Government. The government can accept or reject these recommendations. Statement 3 is CORRECT: The Finance Commission plays a crucial role in determining the distribution of net proceeds of taxes between the Union and the States, as well as the principles governing grants-in-aid to the States out of the Consolidated Fund of India.
Source Articles
In Focus podcast | Is a ‘double engine government’ crucial for growth? - The Hindu
Is a ‘double engine government’ crucial for growth? - The Hindu
The BJP’s Double Engine Strategy is Impacting India’s Federalism - Frontline
Power of ‘double engine’ one of the reasons for Karnataka’s fast-paced growth, says Narendra Modi - The Hindu
Double-engine government in Andhra Pradesh lays strong foundation for a brighter 2026, says Lanka Dinakar - The Hindu