NITI Aayog & Federalism

Sir, in the 1st Meeting of NITI Aayog, a major point of discussion was that effective targeting(devolution of funds)to state welfare programmes would be more effective than centrally sponsored schemes(one size fits all). my question is that will this not undermine the centre's control or was it needed for a more targeted outreach and better federalism?

That is the primary aim of NITI. To make it more federal in nature, inclusive of the states' priorities. the main aim is to spend the public money in the best possible way, isnt it?

But sir many states are voicing for abolition of these centrally sponsored schemes. They are asking for more financial freedom to formulate their own policies in accordance with their needs. In case of CSS, it is the center which is formulating the policy. For eg: beti bachao bet I padhao. But I meant, states are asking for a freedom to formulate the policy itself. As it was quoted " No one size fits all"

Central government does not have implementing agencies under it. Generally, it formulates policy, allocates fund and leaves it to the respective states to implement. The purpose of the devolution mechanisms is to ensure that the states have enough funds to fulfill their constitutional obligations.

finally money belongs to central govt so central govt is responsible. state govt can make their policy and their programmes with their money. constitution clearly spells out the list in which states can make their own laws / policies

do the 3 list also limit the policies...? because water, irrigation are in state list..but we see irrigation development prog by union

Yes. The state cannot legislate on the subjects in the central list. And so with the center. Planning Commission and the NITI ayog are extra constitutional authorities., whereas the Finance Commission is provided for devolution in the Constitution of India.

Centre can only legislate in the state list with the approvals of the states. This is done through a constitutional amendment and ratification. That state concurrence is taken through 2/3 majority in Rajya Sabha. Programs and allocation of subjects are two different things. Center can formulate programs on anything. But, it cannot legislate on the subject.

Sir, if centre is legislating in states, then isn't it National Emergency (President's rule)? Or are these two different?

Different. centre can legislate during normal days also for an item in state list with the approval of states.

It's not that states have to give blanket permission via RS! When a subject of the state list is to be introduced, it is introduced in the RS. And instead of the simple majority, the bill will require 2/3 majority to pass! That is the test and indirect concurrence of the states to legislate on state subject. centre can also legislate to accommodate international treaties and Protocols.