These are administrative reforms, it doesn’t alter the geographical definition of the Indian Union. It will address the long pending demands related to state autonomy which PM Modi used to raise occasionally when he was Gujarat Chief Minister. This progressive reforms that strengthen the federalism of Indian democracy.
North Zone: Ladakh, J&K, Uttarakhand, Himachal Preadesh, Haryana, Punjab, Delhi (Chandigarh, New Delhi)
West Zone: Rajasthan, Gujarat, Maharshtra, Goa (Diu, Daman, Dadra and Nagar Haveli, Arabian Sea Territory around zone under Indian Jurisdiction)
South Zone: Telangana, Andhra Pradesh, Karnataka, Kerala, Tamil Nadu (Puducheri, Andaman & Nicobar Islands, Lakshadweep, Arabian Sea, Indian Ocean, Bay of Bengal Territory around zone under Indian Jurisdiction.)
East Zone: Odisha, West Bengal, Jharkhand (Bay of Bengal Territory around zone under Indian Jurisdiction.)
Central-East Zone: Uttar Pradesh, Bihar, Madhya Pradesh, Chhattisgarh
North-East Zone: Assam, Mizorem, Manipur, Nagaland, Arunachal Pradesh, Sikkim, Meghalaya (Bay of Bengal Territory around region under Indian Jurisdiction.)
The purpose of developing administrative zones is to enhance state cooperation in promoting joint interstate development projects.
Each zone will have a governing council of cabinet ministers representing their respective states.
The Home Ministry of India will be a common stake holder in all administrative zone with a set of constitutionally defined powers to secure the interest of the Indian Union as whole.
The Union Govt will have powers to declare emergency measures in the interest of India under specific exceptions; protecting the territorial integrity is one of such.
The administrative zone can nullify decisions taken without the consent of the zone council with a simple majority.
The council will be the final authority to govern the zone that includes all financial matters of the states such as tax collection and redistribution within the zone.
The Home Ministry will have the final say on matters concerning the nation as whole, i.e. Defense, Intelligence, Railways, Air Transports, National Road Network etc.
The new administrative system will require enormous efforts from the Union Govt to make sure everything work effectively and it will have to ensure better coordination between the zones.
Each administrative zone will have a branch of Election Commission (ECI), Supreme Court of India, Parliament of India and all major national institute to ensure better services to citizens.
ECI will conduct Assembly and Local Corporations elections will be held on the same day for all the member states. Each zone can decide the specific time of year to conduct elections, different zones can have different election cycle of 5 years. i.e. if West Zone have 2015-2020 governing cycle, East Zone could have 2017 to 2022.
The election process for parliamentary elections will resemble to current system; Elections can span over six phases, each zone will get a day for voting.
The zone system will reduce the stress on the Union Government so it can focus more on things that it is required to do.
Administrative Job of Zones
- Finance
- Direct & Indirect tax collection
- Wealth Redistribution among member states.
- Decide GST for the zones
- Education
- Ensure State Autonomy in day to day governance
Key Aspect of Union Govt
- Defense & Internal Security
- Intelligence
- Foreign Policy
- Border Security
- National Corporations: i.e. Railways, Airports, Roads, ISRO, DRDO and R&D etc.
- Central Banking
What are the financial implications?
There is only one update instead of the Union Govt the Zone Council will collect the state revenue, send the decided amount back to state and remaining will be redistributed within the zone states.
Each zone can independently decide on tax rate including GST, Income Tax and corporate tax. GST, Personal and Corporate tax has to be the same in all states of the zone. Zone council will decide and collect fuel charges instead of the Union Govt.
There will be formula and mechanism which each zone can decide for itself. Zone council will collect income tax from residents, corporations, GST and and all other types of tax come under state jurisdictions.
What is the role of the Union Finance Ministry?
Union Finance Ministry of India will look into improving financial efficiency and allocate budget of Govt corporations i.e. BSNL, Airports, Railways, ISRO etc.
The union finance ministry will generate tax revenue from Union Govt corporations, import and export duties, the zones will get a portion of import/export tariffs. It will allocate funds for union govt operations.
It’s not Union Govt job to transfer any amount from its revenues to the state. Zones are responsible for managing its finances. This will sense of responsibility among states to manage funds efficiently.
Governing the council
The member states will host council meetings in the capital for the period of year, i.e. if there are 5 member states then each will host council meetings for 1 year each and it will go on in cycle of 5 years.