FEDERALISM

What is Federalism?

Federalism is a system of government in which the power is divided between a central authority and various constituent units of the country. This contrasts with a unitary system where there is only one level of government or sub-units are subordinate to the central government.

What are the key features of Federalism?

1. Two or more levels of government: There are at least two levels or tiers of government, one for the entire country and others at the provincial or state level.
2. Same citizens, different jurisdictions: Each tier of government governs the same citizens, but each tier has its own jurisdiction in specific matters of legislation, taxation, and administration.
3. Constitutional guarantee: The jurisdictions of the respective levels or tiers of government are specified in the constitution. So, the existence and authority of each tier of government are constitutionally guaranteed.
4. Constitutional changes require consent: The fundamental provisions of the constitution cannot be unilaterally changed by one level of government. Such changes require the consent of both levels of government.
5. Courts as arbitrators: 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.
6. Financial autonomy: Sources of revenue for each level of government are clearly specified to ensure its financial autonomy.
7. Dual objectives: Federal systems thus have dual objectives: to safeguard and promote unity of the country, while at the same time accommodate regional diversity.

Differentiate between 'Coming Together' and 'Holding Together' Federations.

1. Coming Together Federations: Independent states come together on their own to form a bigger unit. By pooling sovereignty and retaining identity, they increase their security. Examples include the USA, Switzerland, and Australia. In this type, states usually have equal power and are strong vis-à-vis the federal government.
2. Holding Together Federations: A large country decides to divide its power between the constituent states and the national government. India, Spain, and Belgium are examples of this type. In this type, the central government tends to be more powerful vis-à-vis the states, and sometimes different constituent units have unequal powers.

How is Federalism practiced in India?

India is a 'Holding Together' federation. Power is shared between the Union government and the State governments. The Constitution originally provided for a two-tier system (Union and State), but a third tier of Panchayats and Municipalities was added later. This structure aims to balance the need for a strong central authority with the accommodation of vast regional and linguistic diversity.