Chapter Notes

What is federalism?

Federalism is a system of government where power is divided between a central government and the various smaller units of the country, like states or provinces. This is a key way that modern democracies share power vertically, among different levels of government.

Typically, a federation has at least two levels of government:

• A central government responsible for subjects of common national interest, like defense and currency.
• State or provincial governments that handle the day-to-day administration of their specific regions.

Crucially, both these levels of government enjoy their power independently of each other.

Key Features of Federalism

A system can be identified as federal if it has the following features:

• Two or more levels (tiers) of government.
• Separate Jurisdiction: Different levels of government rule over the same citizens, but each has its own specific authority (jurisdiction) in matters of law-making, taxation, and administration.
• Constitutional Guarantee: The existence and authority of each level of government are spelled out and guaranteed by the constitution.
• Consent of Both Levels: Fundamental parts of the constitution cannot be changed by just one level of government. Changes require the agreement of both the central and state governments.
• Role of Courts: Courts, especially the highest court, act as an umpire. They interpret the constitution and have the power to settle disputes between different levels of government.
• Financial Autonomy: The constitution clearly specifies the sources of revenue for each level of government to ensure they can function independently.
• Dual Objectives: A federal system aims to both protect the unity of the country and accommodate its regional diversity. To achieve this, governments at different levels must agree on rules for power-sharing and trust each other to follow them.

Types of Federations

The balance of power between the central and state governments depends on how the federation was formed. There are two main routes:

1. 'Coming Together' Federations: This is when independent states join together to form a larger country. They do this to increase their security while keeping their individual identities. In this type of federation, all constituent states usually have equal power and are strong in relation to the central government.

   • Examples: USA, Switzerland, and Australia.

2. 'Holding Together' Federations: This is when a large country decides to divide its power between the national government and its constituent states. In this system, the central government tends to be more powerful than the states. Often, different states have unequal powers, with some being granted special status.

   • Examples: India, Spain, and Belgium.

What makes India a federal country?

India is a vast country with immense diversity in languages, religions, and regions. To manage this diversity, India adopted a federal structure, even though its Constitution describes India as a "Union of States" rather than a "federation." The Indian Union is founded on the principles of federalism.

All the key features of federalism apply to India:

• The Constitution originally created a two-tier system of government: the Union Government (Central Government) and the State governments.
• Later, a third tier was added in the form of Panchayats (in rural areas) and Municipalities (in urban areas).
• Each of these tiers has its own jurisdiction.

Three-Fold Distribution of Legislative Powers

The Indian Constitution clearly divides law-making powers between the Union and State governments into three lists:

• Union List: Includes subjects of national importance where a uniform policy is needed. Only the Union Government can make laws on these subjects.

  • Examples: Defence, foreign affairs, banking, communications, currency.

• State List: Contains subjects of state and local importance. Only State Governments can make laws on these subjects.

  • Examples: Police, trade, commerce, agriculture, irrigation.

• Concurrent List: Includes subjects of common interest to both the Union and State governments. Both governments can make laws on these subjects. If their laws conflict, the law made by the Union Government will be followed.

  • Examples: Education, forests, trade unions, marriage, adoption, succession.

Unequal Powers in the Indian Federation

As a 'holding together' federation, India does not give equal powers to all its states.

• Special Status: Some states, like Assam, Nagaland, Arunachal Pradesh, and Mizoram, have special powers under Article 371 of the Constitution due to their unique social and historical situations. These powers protect the land rights of indigenous people, their culture, and provide preferential employment in government jobs.
• Union Territories: Some units of the Indian Union are too small to become independent states and could not be merged with existing states. These are called Union Territories.
  • Examples: Chandigarh, Lakshadweep, Delhi.
  • These territories have very little power and are run by the Central Government.

The Structure of Indian Federalism

• Changing Power-Sharing: The power-sharing arrangement is a basic part of the Constitution's structure. The Parliament cannot change it on its own. Any change must first be passed by both Houses of Parliament with at least a two-thirds majority and then be approved by the legislatures of at least half of the total states.
• Role of the Judiciary: The judiciary plays a vital role in overseeing the implementation of the Constitution. If there is a dispute over the division of powers, the High Courts and the Supreme Court make the final decision.
• Financial Powers: Both the Union and State governments have the power to raise money by levying taxes to fund their work and responsibilities.

How is federalism practised?

The success of federalism in India is not just due to its constitutional provisions but also because of the nature of its democratic politics. The spirit of federalism, respect for diversity, and a desire to live together have become shared ideals. This has happened in several ways.

Linguistic States

The creation of states based on language was the first major test for Indian democracy after independence in 1947.

• The boundaries of many old states were changed to create new ones, ensuring that people who spoke the same language lived in the same state.
• Some states were also created to recognize differences in culture, ethnicity, or geography.
  • Examples: Nagaland, Uttarakhand, and Jharkhand.

Language Policy

A second test for the Indian federation was its language policy.

• The Constitution did not give the status of a national language to any single language. Hindi was identified as the official language, but it is the mother tongue of only about 40% of Indians.
• To protect other languages, there are 22 Scheduled Languages (including Hindi) recognized by the Constitution. Candidates for Central Government exams can take them in any of these languages.
• States have their own official languages for government work.
• The use of English for official purposes was supposed to stop in 1965, but many non-Hindi speaking states, particularly Tamil Nadu, protested. In response, the Central Government agreed to continue the use of English along with Hindi.

This flexibility shown by Indian leaders helped avoid the kind of conflict seen in Sri Lanka over language.

Centre-State Relations

How federalism works in practice also depends on how the ruling parties at the Centre and in the states interact.

• Early Years: For a long time, the same party ruled at both the Centre and in most states. This meant that state governments often did not act as truly autonomous units. When a different party was in power in a state, the central government sometimes tried to undermine its power or even misused the Constitution to dismiss it.
• After 1990: This situation changed significantly with the rise of regional political parties and the beginning of the era of coalition governments at the Centre. A coalition government is formed when no single party gets a clear majority, and several parties join together to form a government.
• This new political culture led to greater power-sharing and respect for the autonomy of state governments. This trend was further supported by a major Supreme Court judgment that made it difficult for the Central Government to dismiss state governments in an arbitrary way.

As a result, federal power-sharing is more effective today than it was in the early years after the Constitution was implemented.

Decentralisation in India

For a vast and diverse country like India, a two-tier government is not enough. Many Indian states are as large as independent European countries and are internally very diverse. This creates a need for power-sharing within states, leading to a third tier of government: local government.

Decentralisation is the process of taking power away from the Central and State governments and giving it to local government.

Steps Towards Decentralisation

While local governments like Panchayats and Municipalities existed earlier, they were under the control of state governments, elections were not regular, and they had no real powers or resources. A major step to change this was a constitutional amendment in 1992.

Key features of the 1992 amendment:

• It is now constitutionally mandatory to hold regular elections for local government bodies.
• Seats are reserved for Scheduled Castes (SC), Scheduled Tribes (ST), and Other Backward Classes (OBC).
• At least one-third of all positions are reserved for women.
• An independent State Election Commission was created in each state to conduct these elections.
• State governments are required to share some of their powers and revenue with local government bodies.

The Structure of Local Government

Rural Local Government (Panchayati Raj)

• Gram Panchayat: This is a council for a village or a group of villages, consisting of ward members (panch) and a president (sarpanch). They are directly elected by the adult population of the village.
• Gram Sabha: The Gram Panchayat works under the supervision of the Gram Sabha, which consists of all the voters in the village. It meets at least two or three times a year to approve the budget and review the Panchayat's performance.
• Panchayat Samiti (or Block/Mandal): A few Gram Panchayats are grouped together to form a Panchayat Samiti. Its members are elected by all the panchayat members in that area.
• Zilla Parishad: All the Panchayat Samitis in a district together form the Zilla Parishad. Most of its members are elected, and it also includes the local Members of Parliament (MPs) and Members of the Legislative Assembly (MLAs).

Urban Local Government

• Municipalities: These are set up in towns and are controlled by elected representatives. The political head is the Municipal Chairperson.
• Municipal Corporations: These are constituted in big cities. The head of a Municipal Corporation is called the Mayor.

Impact and Challenges of Decentralisation

This new system of local government is the largest experiment in democracy anywhere in the world, with about 36 lakh elected representatives. It has deepened democracy in India and increased women's representation and voice.

However, challenges remain:

• Gram Sabha meetings are often not held regularly.
• Most state governments have not transferred significant powers or adequate resources to local governments.

India is still a long way from fully realizing the ideal of self-government at the local level.