[Answered] Analyze the challenges faced by states that have effectively controlled their population in terms of political representation and fiscal transfers. How can the federal system ensure equitable representation and financial allocation for such states?

The southern states have made notable progress in various areas of social development & economic growth, thanks to their strong linguistic identities and regional resurgence in politics and society. Within the federal political system, shifts in population distribution have enduring effects on both the political landscape and economic geography.

Challenges faced by states in terms of political representation & fiscal transfers:

• Reduced political representation: In India’s parliamentary system, the seats in the Lok Sabha are allocated based on population size. As a result, southern states with controlled populations might experience a relative underrepresentation in the Lok Sabha, which could translate to reduced political influence at the national level.
• Fiscal transfer: In India, fiscal transfers like revenue-sharing and grants often hinge on criteria linked to population & suggested by the Finance Commission. As a consequence, southern states that have managed to control their populations may receive comparatively fewer financial resources, potentially affecting their capacity to deliver essential services and pursue development initiatives. The high per capita of southern states also acts as a determining factor for less share of the state from Union tax revenue.
• Allocation of Resources: These states may also face challenges in securing a fair share of national resources, including infrastructure development, educational institutions, healthcare facilities, and other central government-funded projects.

How can the federal system ensure equitable representation and financial allocation for each state?

• Periodic revision of seats: Periodic revision & review of Lok Sabha seats under the framework of the Constitution taking into account factors beyond population, such as land area, economic contributions, or development indicators can help balance political representation.
• Decentralization of functions: The need is to promote decentralization by granting states greater control over their revenue generation and expenditure. Empower states to raise funds through local taxes and allocate resources based on their specific priorities and needs.
• Cooperative federalism: Encourage cooperative federalism, where states work together on projects and initiatives that benefit the entire nation. This can facilitate resource sharing and cooperation among states, regardless of their population.
• Special Grants and Assistance: Introduce special grants and financial assistance programs for states that have successfully controlled their population. These grants can support development initiatives and compensate for reduced fiscal transfers.

Conclusion

Any step towards changing political representation in Lok Sabha must be based on National Consensus and the fears of the southern states must be addressed. The finance commission must evolve a formula to reward the states that have controlled their population financially.