CHAPTER 2

FEDERALISM

Introduction
Federalism is a system of government in which the power is divided
between a central authority and various constituent units of the
country. The term ‘union of states' is used in the Indian Constitution;
not ‘federalism'.

Features of Federalism
1. There are two (or more) levels/tiers of government.
2. Different tiers of government govern the same citizens but each
tier has its own jurisdiction in specific matters of legislation,
taxation and administration.
3. The jurisdiction of the respective levels or tiers of government are
specified in the Constitution. So the existence and authority of
each tier of the government is constitutionally guaranteed.
4. The fundamental provisions of the Constitution cannot be
unilaterally changed by one level of government. Such changes
require the consent of both the levels of the government.
5. Courts have the power to interpret the Constitution and the
powers of different levels of government. The highest court acts
as an umpire if disputes arise between different levels of
government in the exercise of their respective powers.
6. Sources of revenue for each level of government are clearly
specified to ensure its financial autonomy.
The federal system thus has dual objectives: to safeguard and
promote unity of the country, while at the same time accommodate
regional diversity. An ideal federal system has both aspects: mutual
trust and agreement to live together.

Types of Federations
1. Coming Together Federations: independent states come together
on their own to form a bigger unit, so that by pooling sovereignty
and retaining identity, they can increase their security. All
constituent states usually have equal power and are strong vis-á-
vis the federal government. EX: USA, Australia Switzerland, etc.
2. Holding Together Federations: a large country decides to divide
its power between the constituent states and the national
government. The central government tends to be more powerful
vis-á-vis the states. EX: India, Spain, Belgium, etc.

What makes India a Federal Country?

The Constitution originally provided for a two-tier system of
government, the Union Government and the State Governments.
Later, a third tier of federalism was added in the form of Panchayats
and Municipalities. The Constitution clearly provided a three-fold
distribution of legislative powers between the Union and the State.
Thus, it contains three lists:-
1. Union List: subjects of national importance that require uniform
laws; can only be made by the Union Government; ex: defense,
foreign affairs, banking, communications and currency.
2. State List: subjects of state and local importance; laws can only be
made by the State Governments; ex: police, trade, commerce,
agriculture and irrigation.
3. Concurrent List: subjects of common interest to both Union and
States; laws made by either (w/ special preference to the Union);
 ex: education, forest, trade unions, marriage, adoption and
succession.
Residuary Subjects: subjects that came after the Constitution was made;
laws can only be made by the Union Government; ex: computer
software, space technology, IT, etc.

States with Special Powers

 Under special provisions of Constitution (article 371)
 Due to their peculiar social and historical circumstances
 Ex of States: Assam, Nagaland, Arunachal Pradesh, Mizoram
 Ex of Powers: protection of land rights of indigenous people,
their culture, preferential employment in government services;
Indians who are not permanent residents of these states cannot
buy land or house there.

Union Territories
 Enjoy very little power because the central government has
special powers in running these areas
 Areas too small to become an independent state but which
could not be merged with any of the existing states

Changes in this Arrangement

 Must be passed by both houses of parliament with at least 2/3rd
majority
 Must then be ratified by the legislature of at least half of the
total states

Linguistic States
Some states were created on the basis of language, culture, ethnicity
or geography—changing the boundary of several old states. This
made the country more united and made administration easier.
Andhra Pradesh was the first linguistic state. Others include Tamil
Nadu, Nagaland, Uttarakhand, Jharkhand, etc.

Language Policy
Hindi is the official language of India [but is the mother tongue of
only 40%]. Besides Hindi, there are 21 other languages recognized as
Scheduled Languages. States also have their own official languages.
The use of English for official purposes was to stop in 1965. However,
many non-Hindi States (especially Tamil Nadu) protested so the
central government agreed to continue its use. Despite this, the
promotion of Hindi continues to be the official policy of the Indian
Government.

Centre-State Relations
For a long time, the same party ruled both at the Centre and in most
of the States—undermining the power of the States and State
Governments of rival parties. This changed after 1990, with State
Governments, beginning to exercise their rights as autonomous
federal units. This is also when coalition governments began.

Decentralization in India
When power is taken away from the Central and State governments
and given to local governments, it is known as decentralization. This is
important because:-
 Local people know better about local conditions
 They have better ideas concerning money, management and
efficiency
 This improves the habit of decision-making and participation in
democracy
The 1992 Amendment thus made the Third-Tier more Effective:-
1. Holding regular elections to local governments is mandatory
2. Seats are reserved in elected bodies and executive heads for SCs,
STs and OBCs
3. At least 1/3rd of all positions are reserved for women
4. An independent State Election Commission has been made in
each state to conduct panchayat and municipal elections
5. State governments are required to share some powers and
revenue with the local governments

Each village, or a group of villages in some States has a gram

panchayat. The members are called panch and the president is
called sarpanch. They are directly elected by all the adult
population.
A few gram panchayats are grouped together to form what is
usually called a panchayat samiti or block or mandal. All the
panchayat samitis in a district together constitute the zilla (district)
parishat.
Municipalities are set up in towns, whose head is called a municipal
chairperson. Big cities are constituted into municipal corporations,
whose head is called a mayor.
Difficulties
1. Gram sabhas are not held regularly
2. Most state governments have not transferred significant powers
to the local governments
3. Local governments have also not been given adequate resources
by the state governments