Federalism is a system of government in which the power is divided between a central authority and various constituent units of the country. It is an institutional mechanism to accommodate two sets of polities, one at the level of the national or the central government and the other at the level of the provinces or the states. In a federation, the powers are clearly divided between the central and the state governments by the constitution, and both the levels of government have their own areas of jurisdiction. This chapter studies the concept of federalism, its key features, the federal system in India, and the ways in which Indian federalism has been strengthened over the years.
The chapter examines the two routes of the creation of federations: the 'coming together' federations, like the USA, Switzerland and Australia, where the independent states came together to form a larger country, and the 'holding together' federations, like India, Spain and Belgium, where a large country decided to divide its power between the constituent states and the national government. The chapter then analyses the Indian federal system, its constitutional provisions, the division of powers, and the factors that have strengthened federalism in India.
For the board examination, students must understand the key features of federalism, the difference between the two types of federations, the Union, State and Concurrent lists, the role of the judiciary in interpreting the constitution, the linguistic states, the language policy, and the decentralisation of power to the local governments through the Panchayati Raj institutions.
Federalism is a system of government in which the power is divided between a central authority and various constituent units of the country. The key features of federalism are several. There are two or more levels of government in a federation, and the different tiers of government govern the same citizens, but each tier has its own jurisdiction in specific matters of legislation, taxation and administration. The jurisdiction of the different tiers of government is specified in the constitution, and the existence and the authority of each tier of government are constitutionally guaranteed.
The fundamental provisions of the constitution cannot be unilaterally changed by one level of government, and the changes require the consent of both the levels of government. The courts have the power to interpret the constitution and the powers of the different levels of government, and the highest court acts as an umpire if there are disputes between the different levels of government in the exercise of their respective powers. The sources of revenue for each level of government are clearly specified, to ensure their financial autonomy.
There are two types of federations. In the 'coming together' type, such as the USA, Switzerland and Australia, the independent states came together on their own to form a bigger unit, by pooling their sovereignty and retaining their identity. In this type, the constituent states typically have equal powers and are strong vis-a-vis the federal government. In the 'holding together' type, such as India, Spain and Belgium, a large country decided to divide its power between the constituent states and the national government. In this type, the central government tends to be more powerful, and the constituent states have unequal powers.
India is a federal country, but it is a federal system with a unitary bias, as some scholars describe it. The constitution of India originally provided for a two-tier system of government, the Union government and the state governments, and the third tier, the local governments, was added later. The constitution divides the powers between the Union and the states through the three lists: the Union List, which includes the subjects of national importance, such as defence, foreign affairs, banking, communications and currency, on which the Union government alone can make laws; the State List, which includes the subjects of state and local importance, such as police, trade, commerce, agriculture and irrigation, on which the state governments alone can make laws; and the Concurrent List, on which both the Union and the state governments can make laws.
The subjects that do not fall in any of the three lists are called the residuary subjects, and the law on these subjects is made by the Union government. The three lists are part of the constitution, and the division of powers is constitutionally guaranteed. The Indian federal system gives the Union government more powers than the state governments in some matters, such as the residuary powers, and in some situations, such as the emergency provisions, and this is why it is called a federal system with a unitary bias.
The judiciary, especially the Supreme Court, is the interpreter and the umpire of the federal system, and it resolves the disputes between the Union and the states. The provisions of the constitution also lay down the distribution of the revenue between the Union and the states, and the Finance Commission is appointed to recommend the distribution of the revenue between the Union and the states. The Indian federal system is thus a complex but workable arrangement that accommodates the enormous diversity of the country.
There are several features that make India a federal country. First, there are two or more levels of government in India, the Union, the states and the local governments, and each level has its own jurisdiction. Second, the jurisdiction of the different levels of government is specified in the constitution, and the three lists clearly define the subjects on which the different levels can make laws. Third, the constitution is the supreme law of the land, and the fundamental provisions of the constitution cannot be unilaterally changed by one level of government.
Fourth, the judiciary, headed by the Supreme Court, interprets the constitution and acts as an umpire in the disputes between the Union and the states. Fifth, the sources of revenue for the Union and the states are clearly specified in the constitution, and the Finance Commission is appointed to recommend the distribution of the revenue. Sixth, there is a dual system of government, with both the Union and the state governments having their own executives, legislatures and bureaucracies, and both are responsible to the people.
However, the Indian constitution has a unitary bias. The Union government has more powers than the state governments in several respects, such as the residuary powers, the appointment of the governors, the emergency provisions and the President's rule. The Indian federalism is thus a system of the 'holding together' type, which divides power to accommodate the diversity of the country while maintaining the unity of the nation.
The creation of the linguistic states was the first and a major test of democratic politics in India. The country was divided into states on the basis of the languages spoken by the people, to make the administration easier and the unity of the nation stronger. The linguistic division of the states was opposed initially, as it was feared that it would lead to the disintegration of the country, but the experience has shown that the creation of the linguistic states has actually strengthened the unity and the democracy of the country, as it has made the administration closer to the people.
The language policy of the Indian federation has also been handled carefully. The constitution did not give the status of the national language to any one language, and it recognised Hindi as the official language, but the states were free to conduct their business in their own languages. The use of the English language was allowed for the official purposes, and the three-language formula was adopted for the schools. The language policy has thus prevented the domination of one language over the others and has accommodated the linguistic diversity of the country.
The centre-state relations in India have evolved over the years. The constitution divided the powers between the Union and the states, and the judiciary has interpreted the constitution in the cases of the disputes. The central government has the power to give directions to the state governments, and it can impose the President's rule in a state in some situations. However, the Supreme Court has ruled that the power of the central government is limited and cannot be used arbitrarily, and the federalism in India has been strengthened by the judicial decisions and the political practice.
The federal system in India was originally a two-tier system, but the constitution was amended in 1992 to make the local governments the third tier of the democracy. The 73rd and the 74th constitutional amendments made the rural and the urban local governments, the panchayats and the municipalities, the units of the local self-government. The decentralisation of power to the local governments was intended to bring the democracy to the grassroots and to involve the people in the governance of their own areas.
The 73rd amendment, which came into effect in 1993, gave the constitutional status to the Panchayati Raj institutions. The Gram Panchayat is the local government at the village level, and the Panchayat Samiti is at the block level, and the Zila Parishad is at the district level. The seats are reserved for the Scheduled Castes, the Scheduled Tribes and the women, and the elections to the panchayats are held regularly. The state governments have the responsibility to ensure the regular elections and the devolution of the powers and the resources to the panchayats.
The 74th amendment gave the constitutional status to the municipalities in the urban areas. The decentralisation has brought the government closer to the people, and it has given the people the opportunity to participate in the planning and the implementation of the development programmes in their areas. The Panchayati Raj institutions are thus an important instrument of the democracy and the empowerment of the people, especially the weaker sections and the women.
| List | Subjects | Which Level Makes Laws |
|---|---|---|
| Union List | Defence, foreign affairs, banking, communications, currency | Only the Union government |
| State List | Police, trade, commerce, agriculture, irrigation | Only the state governments |
| Concurrent List | Education, forests, marriage, adoption | Both the Union and the state governments |
| Residuary subjects | Not in any list | Union government |
| Level of Government | Type | Examples |
|---|---|---|
| Union government | Central | Defence, foreign affairs |
| State governments | Provincial | Police, agriculture, irrigation |
| Local governments | Panchayati Raj and municipalities | Gram Panchayat, Panchayat Samiti, Zila Parishad |
Federalism is a system of government that divides power between the central and the state governments, accommodating the diversity of a vast country like India while maintaining its unity. The Indian constitution provides a clear division of powers through the Union, State and Concurrent lists, with the Union government enjoying a unitary bias in matters such as residuary powers and emergencies. The creation of the linguistic states, the careful language policy, and the evolving centre-state relations have all strengthened Indian federalism in practice. The most significant recent development has been the decentralisation of power through the 73rd and 74th amendments, which brought democracy to the grassroots through the Panchayati Raj institutions and the municipalities. Indian federalism, therefore, is a dynamic and workable system that balances the need for unity with the imperative of accommodating the enormous diversity of the country and empowering its people.