संविधान के अनुच्छेद 293 के तहत राज्यों पर उपार लेने की प्रतिबंध, यद्यपि संवैधानिक रूप से वैध है, केंद्रीय स्वायत्ता को बाधित कर सकते हैं और सहकारी संघवाद को प्रभावित कर सकते हैं। हालांकि परामर्श के आलोक में विभिन्न कीजिए। (उत्तर 250 शब्दों में दीजिए) The restrictions imposed under Article 293 of the Constitution on State borrowing powers, though constitutionally valid, may hinder fiscal autonomy of States and disrupt cooperative federalism. Discuss in the light of recent developments. (Answer in 250 words)

The recent dispute under Article 131 where Kerala filed against the Union Government for restricting borrowing under Article 293 speaks to the states' limited fiscal autonomy.

Limited fiscal autonomy of states:

1. more prevalent in southern states: with low fertility rates (average of 1.1) thus have huge fiscal burdens.

2. most grants tied to condition, eg: (centrally sponsored schemes)

3. erosion of state distribution – development needs unique across states.

4. Limited pool of resources – less and surcharge and customs not part of divisible pool.

5. A-293 limits market borrowing.

[Deviation of cooperative Federalism]

1. SR Bommai judgment – states not organs of union government, independent units.

2. lack of input from states for discretion of funds.

Thus, the limited fiscal autonomy leads to tangible fissures in the federal set up of the country.

Way ahead for fiscal autonomy:

Thus, cooperative federalism envisages devolution of funds, functions and functionaries (leaving the way) – can states borrow can aid fiscal autonomy and cooperative federalism.

[Diagram/Flow showing:

Way ahead for fiscal autonomy:

Shares and surcharges beyond 10% cap (Srivid, Panjagnya and Chargagyan)

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Thus, cooperative federalism envisages devolution of funds, functions and functionaries (leaving the way) – can states borrow can aid fiscal autonomy and cooperative federalism.