Divergent political interests and financial constraints hinder the spirit of 'cooperative federalism'. Comment. (Answer in 150 words)

- Divergent political interests and financial constraints hinder the spirit of 'cooperative federalism'. Comment. (Answer in 150 words)
Introduction
Cooperative federalism envisions harmonious collaboration between the Union and States for shared national goals. However, in practice, divergent political interests and financial imbalances often undermine this spirit.
Body
1. Divergent Political Interests: Different political parties ruling at the Centre and States lead to policy conflicts and mistrust. Central schemes may be resisted or rebranded by opposition-ruled States, while the Centre may use funding or investigations to exert political pressure, weakening collaboration.
Example: Disputes over GST compensation and centrally sponsored schemes reflect such tensions.
1. Financial Constraints: The Centre controls major revenue sources, while States bear heavy expenditure responsibilities, leading to vertical fiscal imbalance. Dependence on conditional transfers restricts States’ policy autonomy and innovation.
2. Institutional Weakness: Bodies like the Inter-State Council and NITI Aayog lack binding authority to mediate effectively between governments.
Conclusion
Cooperative federalism can thrive only when financial devolution, political trust, and institutional dialogue ensure equal partnership, not hierarchical dependence, between the Centre and States.