THE CONTEXT: India’s new government faces the pressing challenge of resolving tensions over climate disaster compensation between the Union government and its southern states. These states, which significantly contribute to the national economy, are demanding their fair share within the federal framework and rebelling against perceived fiscal injustice. The main contention lies in the alleged discrimination in the distribution of central funds, particularly in climate-related disasters.
THE ISSUES:
- Disparity in Central Fund Allocation: The southern states allege discrimination in the distribution of central funds, claiming that they receive less support than the northern states, particularly those governed by the BJP, despite contributing significantly more to the national economy.
- Economic Contribution vs. Fiscal Returns: The southern states, which contribute over 30% to India’s GDP and significantly to its forex reserves, feel they are not receiving a fair share of central funds in return, leading to accusations of fiscal injustice.
- Climate Disaster Compensation: There is a recurring issue of inadequate and delayed compensation from the Union government for climate disasters affecting the southern states. This has led to legal actions and protests by the state governments to secure necessary relief funds.
- Urbanization and Environmental Vulnerability: Rapid and unplanned urbanization in southern states, particularly in cities like Bengaluru, has increased their vulnerability to climate-related disasters such as floods, landslides, and water shortages. This is exacerbated by poor environmental planning and management.
- Political and Populist Pressures: State governments in the south are under significant political pressure to provide immediate relief and compensation to their citizens affected by climate disasters, often leading them to allocate state funds beyond what the central government offers.
- Call for Climate Justice: The southern states are demanding greater recognition and support from the Union government for managing climate disasters. They argue that New Delhi must address these internal issues to maintain its credibility in global climate change debates and ensure equitable treatment within India’s federal structure.
THE WAY FORWARD:
- Equitable Distribution of Central Funds: The Union government should adopt a more transparent and equitable formula for the distribution of central funds. This could involve revising the criteria used by the Finance Commission to ensure that states contributing more to the national economy receive a fairer share of central funds. This would help address the grievances of South Indian states and ensure they are adequately compensated for their economic contributions.
- Enhanced Climate Disaster Relief Mechanisms: Establish a streamlined and efficient mechanism to disburse disaster relief funds. This could include setting up a dedicated climate disaster relief fund with predefined criteria for quick disbursement based on the severity of the disaster. Additionally, the process for states to access these funds should be simplified to ensure timely assistance.
- Strengthening Cooperative Federalism: Promote cooperative federalism by enhancing the role of inter-state councils and the NITI Aayog in mediating disputes and fostering collaboration between the Union and state governments. This could involve regular consultations and joint decision-making processes on fiscal policies, disaster management, and other critical issues.
- Decentralization of Fiscal Powers: Decentralize fiscal powers by allowing states to retain a larger share of the taxes they generate. As some experts suggest, this could involve increasing the states’ share of the divisible tax pool from the current 41% to 50%. This would empower states to address their unique challenges more effectively and reduce their dependence on central funds.
- Climate-Resilient Urban Planning: Implement climate-resilient urban planning practices to mitigate the impact of climate change. This could include investing in sustainable infrastructure, improving drainage systems, and enforcing stricter land use and construction regulations. Additionally, promoting green spaces and enhancing the capacity of local governments to manage urban growth can help build more resilient cities.
THE CONCLUSION:
The new government in India must address the recurring climate disasters and associated casualties affecting its economically vital southern states. These states, which drive the country’s growth engine, strive for ‘climate justice’ within India’s federal arrangements. New Delhi must reconcile its leadership role in global climate change debates with the urgent need to support its southern states.
UPSC PAST YEAR QUESTIONS:
Q.1 While the national political parties in India favor centralization, the regional parties favor State autonomy. Comment. 2022
Q.2 Discuss the recent measures initiated in disaster management by the Government of India, departing from the earlier reactive approach. 2020
Q.3 The frequency of urban floods due to high-intensity rainfall is increasing over the years. Discussing the reasons for urban floods. Highlight the mechanisms for preparedness to reduce the risk during such events. 2016
Q.4 How far do you agree that the behavior of the Indian monsoon has been changing due to humanizing landscapes? Discuss. 2015
MAINS PRACTICE QUESTION:
Q.1 Discuss the economic and political implications of the alleged fiscal injustice faced by South Indian states in the context of climate disaster compensation. How should the new government address these issues to ensure equitable distribution of central funds and effective climate disaster management?
SOURCE:
https://thewire.in/environment/climate-change-deepens-indias-north-south-divide
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