Article 282 and Centrally Sponsored Schemes: Implications on Fiscal Federalism in India

Abstract

India is a quasi-federal country which implies that on one hand when the States require autonomy and flexibility in working, on other hand it also required an interdependence between the Centre and the state, thereby giving birth to the idea of cooperative federalism. The constitution of India has clearly given a framework demarcating the power, functions and responsibilities of each level of government and there are a few provisions which aim at cooperative federalism. Article 282 of the Indian Constitution is one such provision which empowers both the Centre as well as the State to provide grants for public purpose. The paper seeks to examine the issues and challenges faced by the fiscal federalism in India. The paper also delves into the constitutional provision to understand and identify the use of Article 282. The current debate with respect to the state autonomy in matters of finances and prioritizing the need of the states compel the analysis of Article 282 with reference to the Centrally Sponsored Schemes (CSS). The paper thus aims to give a comprehensive analysis of Article 282 and its use and implications on fiscal federalism in India.