Comprehensive Study Notes on Federalism

Overview and Definition of Federalism

• Vertical division of power among different levels of government is a fundamental form of power-sharing in modern democracies.
• Federalism is defined as a system of government in which power is divided between a central authority and various constituent units of the country.
• Global Scope of Federalism:
  • Out of $193$ countries in the world, only $25$ have federal political systems.
  • Citizens of these $25$ federal countries account for $40\%$ of the total world population.
  • Most large nations are federations, though exceptions exist.
  • Federal countries include: Canada, United States of America, Mexico, Argentina, Venezuela, Brazil, St. Kitts and Nevis, Belgium, Switzerland, Spain, Nigeria, Ethiopia, Comoros, Bosnia and Herzegovina, Austria, Pakistan, India, Malaysia, Australia, South Africa, United Arab Emirates, Germany, and Micronesia.

• Comparison of Governance Structures (Belgium vs. Sri Lanka):
  • Belgium: Regional governments existed prior to $1993$, but their powers were subordinate to and revocable by the central government. Constitutional amendments in $1993$ granted legal powers to regional governments that could no longer be unilaterally revoked by the central government, transitioning Belgium from a unitary to a federal system.
  • Sri Lanka: Retains a unitary system where the national government holds all sovereign administrative powers. Tamil political leaders advocate for a transition to a federal structure.
• Levels of Government in a Federation:
  • Central/National Government: Responsible for overall national subjects and matters of common national interest.
  • Provincial/State Governments: Responsible for local administration and day-to-day governance within their respective geographical units.
  • Both tiers operate with independent constitutional authority.
• Fundamental Distinction between Federal and Unitary Systems:
  • In a unitary system, either a single level of government exists or sub-units are strictly subordinate to the central authority, which can issue mandatory administrative orders to local units.
  • In a federal system, the central government cannot dictate administrative directives to state governments. State governments possess autonomous power and are accountable directly to the citizens, not to the central authority.
• Definition of Jurisdiction:
  • Jurisdiction: The specified legal area over which an authority exercises legal jurisdiction, defined by geographical boundaries or designated subject matter.

Key Features of Federalism

• Multiple Tiers: Presence of two or more levels (or tiers) of government.
• Distinct Jurisdiction: Different tiers govern the same citizens, but each tier possesses its own constitutional jurisdiction regarding legislation, taxation, and administration.
• Constitutional Guarantee: The existence and authority of each tier of government are explicitly guaranteed by the constitution.
• Rigid Amendment Process: Fundamental provisions of the constitution cannot be altered unilaterally by a single level of government; modifications require formal consent from both federal and state levels.
• Judicial Review and Adjudication: Courts hold power to interpret the constitution and delineate executive/legislative powers. The highest court (Supreme Court) functions as an independent umpire in intergovernmental power disputes.
• Financial Autonomy: Specific sources of revenue for each governmental level are constitutionally demarcated to guarantee financial independence.
• Dual Objectives:
  • To safeguard and promote national unity.
  • To accommodate regional and cultural diversity simultaneously.
• Essential Principles of Federal Institutional Functioning:
  • Mutual agreement on power-sharing rules between government tiers.
  • Mutual trust regarding adherence to established constitutional contracts.

Routes of Federation Formation

• Coming Together Federations:
  • Independent states pool their individual sovereignty while preserving regional identity to enhance mutual security.
  • States typically retain equal power and remain strong relative to the central government.
  • Examples include: United States of America, Switzerland, and Australia.
• Holding Together Federations:
  • A large nation divides its governance power between constituent regional states and the central national government.
  • The central government typically retains greater authority relative to individual states.
  • Constituent states may possess asymmetric powers, with specific units granted constitutional status or special protections.
  • Examples include: India, Spain, and Belgium.

Constitutional Provisions for Indian Federalism

• Historic Context:
  • India established independence following partition and the subsequent integration of numerous princely states.
  • Article $1$ of the Indian Constitution declares India as a "Union of States." Although the word "federation" is not explicitly used, the Indian Union is established upon federal principles.
• Three-Fold Legislative Power Distribution (Three Lists):
  • Union List:
  • Includes subjects of national importance requiring uniform policy across the country.
  • Key Subjects: Defence of the country, foreign affairs, banking, communications, and currency.
  • Legislation Authority: The Union Government holds exclusive power to enact laws on these subjects.
  • State List:
  • Includes subjects of regional and local administrative importance.
  • Key Subjects: Police, trade, commerce, agriculture, and irrigation.
  • Legislation Authority: State Governments hold exclusive power to enact laws on these subjects.
  • Concurrent List:
  • Includes subjects of joint interest to both national and state tiers.
  • Key Subjects: Education, forests, trade unions, marriage, adoption, and succession.
  • Legislation Authority: Both Union and State Governments can legislate. In case of direct legal conflict between Union and State laws, the law made by the Union Government prevails.
  • Residuary Powers:
  • Includes subjects not listed in any of the three original lists, including new subjects that emerged post-constitution (e.g., computer software).
  • Legislation Authority: Retained exclusively by the Union Government.
• Asymmetric Federalism and Special Provisions:
  • States such as Assam, Nagaland, Arunachal Pradesh, and Mizoram are granted special autonomous provisions under Article $371$ of the Constitution due to unique historical and social contexts.
  • Protections include safeguarding indigenous land rights, cultural preservation, and preferential allotment in public employment.
  • Non-permanent residents of these states are restricted from purchasing immovable property (land or houses) within their boundaries.
• Union Territories:
  • Administrative units that are too small to function as independent states and cannot be integrated into existing adjacent states.
  • Examples: Chandigarh, Lakshadweep, and the National Capital Territory of Delhi.
  • Union Territories do not possess state powers; the Central Government exercises direct administrative authority over them.
• Constitutional Amendment Procedure for Power-Sharing:
  • Alterations to constitutional power distribution require a two-step process:
  1. Approval by both Houses of Parliament (Lok Sabha and Rajya Sabha) with at least a two-thirds ($\frac{2}{3}$) majority.
  2. Formal ratification by the elected legislative assemblies of at least half of the total states.
• Legal Dispute Resolution:
  • High Courts and the Supreme Court of India hold exclusive authority to interpret constitutional division of powers and settle disputes between tiers.
  • Financial resources are collected independently through tax levies assigned to each tier.

Practice of Federalism in India

• The success of Indian federalism depends on the democratic political culture, political policies, and constitutional commitments.

Linguistic States

• The reorganization of state boundaries along linguistic lines represented the first major test for democratic federal practice in India.
• Boundary alterations began in $1947$ and continued through $2019$ and beyond.
• Objectives: To ensure people speaking the same language resided in the same state, promoting administrative efficiency and regional integration.
• Non-Linguistic State Creation: States like Nagaland, Uttarakhand, and Jharkhand were created based on cultural, ethnic, or geographical distinctiveness rather than language alone.
• Initial concerns by national leaders regarding state reorganization included potential national disintegration. In practice, linguistic state formation strengthened national unity and streamlined administration.

Language Policy

• The Constitution of India does not confer the status of national language on any single language.
• Official Language: Hindi is recognized as the official language. Hindi is the mother tongue of approximately $40\%$ ($43.63\%$ as per the $2011$ Census) of the population.
• Scheduled Languages: The Eighth Schedule of the Constitution recognizes $22$ official languages (including Hindi). Candidates taking Central Government civil service examinations may elect to take examinations in any of these recognized languages.
• State Official Languages: Individual states establish their own official languages for internal administrative work.
• English Language Provision:
  • The Constitution originally stipulated that the official use of English would cease in $1965$.
  • Opposition from non-Hindi-speaking states—including violent demonstrations in Tamil Nadu—led the Central Government to amend policy, allowing English to continue alongside Hindi for official administrative purposes.
  • Promotion of Hindi remains official government policy, but the Central Government cannot impose Hindi on non-Hindi-speaking states.

Centre-State Relations and Political Dynamics

• Pre-1990 Era:
  • A single political party dominated both central and state governments for extended periods.
  • State governments frequently functioned with limited autonomy.
  • When different political parties ruled states, central authorities often invoked constitutional provisions (such as Article $356$) to dismiss opposition state governments, undermining federal autonomy.
• Post-1990 Era:
  • Rise of prominent regional political parties across multiple states.
  • Transition to coalition governance at the central level, as no single national party secured absolute majorities in the Lok Sabha.
  • Major national parties formed political alliances with diverse regional parties, fostering a coalition culture that respected state autonomy.
  • A landmark ruling by the Supreme Court restricted the Central Government's ability to arbitrarily dismiss state governments.

Linguistic Diversity Data of India

• According to the $2011$ Census of India:
  • Over $1300$ distinct mother tongues were recorded.
  • Mother tongues were aggregated under broader core language groups (e.g., Bhojpuri, Magadhi, Bundelkhandi, Chhattisgarhi, and Rajasthani were grouped under Hindi).
  • After aggregation, $121$ major distinct languages were identified.
  • $22$ languages are listed under the Eighth Schedule of the Indian Constitution as Scheduled Languages; all remaining languages are classified as non-Scheduled Languages.
• Speaker Distribution Breakdown ($2011$ Census Data):
  • Assamese: $1.26\%$
  • Bengali: $8.03\%$
  • Bodo: $0.12\%$
  • Dogri: $0.21\%$
  • Gujarati: $4.58\%$
  • Hindi: $43.63\%$
  • Kannada: $3.61\%$
  • Kashmiri: $0.56\%$
  • Konkani: $0.19\%$
  • Maithili: $1.12\%$
  • Malayalam: $2.88\%$
  • Manipuri: $0.15\%$
  • Marathi: $6.86\%$
  • Nepali: $0.24\%$
  • Odia: $3.10\%$
  • Punjabi: $2.74\%$
  • Sanskrit: Negligible ($\text{N}$)$
  • Santali: $0.61\%$
  • Sindhi: $0.23\%$
  • Tamil: $5.70\%$
  • Telugu: $6.70\%$
  • Urdu: $4.19\%$
• English Language Usage Statistics:
  • Primary mother tongue speakers: $0.02\%$
  • Second or third language speakers: Approximately $11\%$

Historical Analysis of Reorganisation (Ramachandra Guha Excerpts)

• Historical Context:
  • The States Reorganisation Commission (SRC) report was implemented on November 1, $1956$.
  • Freedom movement leaders, including Mahatma Gandhi, promised linguistic state divisions post-independence.
  • Partition in $1947$ caused political leaders (including Jawaharlal Nehru, Vallabhbhai Patel, and C. Rajagopalachari) to initially hesitate on language-based states, fearing further fragmentation.
• Outcome and Impact:
  • Linguistic state creation strengthened rather than compromised Indian unity.
  • It integrated regional identities (e.g., Kannadiga, Bengali, Tamil, Gujarati) with Indian national identity.
  • Historian Ramachandra Guha asserts that accommodating linguistic identities prevented severe balkanization ("One language: 14 or 15 nations").

Decentralisation in India: The Third Tier of Governance

• Decentralisation: The transfer of political, legislative, and administrative power from central and state authorities to local self-governments.
• Contextual Rationale for India:
  • Indian states are comparable in size and population to major European nations (e.g., Uttar Pradesh has a larger population than Russia; Maharashtra is as populous as Germany).
  • Extreme internal diversity requires localized problem-solving, efficient fiscal management, and direct community participation in public administration.
• Pre-$1992$ System:
  • Local bodies (panchayats in rural areas, municipalities in urban areas) existed under the direct legal control of state governments.
  • Elections were irregular, and local bodies lacked independent revenue sources and constitutional autonomy.
• Landmark $1992$ Constitutional Amendment Reforms ($73\text{rd}$ and $74\text{th}$ Constitutional Amendments):
  • Mandated regular, periodic elections for all local governance bodies.
  • Implemented constitutional seat reservations for Scheduled Castes (SC), Scheduled Tribes (ST), and Other Backward Classes (OBC).
  • Reserved at least one-third ($\frac{1}{3}$) of all elected positions and executive offices for female candidates.
  • Created an independent State Election Commission in every state to conduct panchayat and municipal elections.
  • Obligated state governments to share statutory administrative powers and tax revenues with local government bodies.

Rural Local Government Structure (Panchayati Raj)

• Gram Panchayat:
  • Local executive governance council serving a single village or group of villages.
  • Composed of several ward members (Panch) and an executive chief (Sarpanch), directly elected by all adult village residents.
  • Operates as the decision-making entity for local village affairs.
• Gram Sabha:
  • General supervisory assembly consisting of all registered voters in the village.
  • Functions as the legislative body oversight for the Gram Panchayat.
  • Mandated to meet at least two to three times annually to approve the Gram Panchayat's operational budget and review administrative performance.
• Panchayat Samiti / Block / Mandal:
  • Intermediate governance level created by grouping multiple Gram Panchayats.
  • Representative members are elected directly by Panchayat members within the designated block boundary.
• Zilla Parishad:
  • District-level governance body comprising all Panchayat Samitis within a district.
  • Membership includes elected district representatives, local members of Parliament (MPs), members of the State Legislative Assembly (MLAs), and district-level administrative officers.
  • The Zilla Parishad Chairperson functions as the political head of the district parishad.

Urban Local Government Structure

• Municipalities:
  • Established in smaller urban towns.
  • Headed politically by the Municipal Chairperson.
• Municipal Corporations:
  • Established in major urban centers and cities.
  • Headed politically by the Mayor.
  • Controlled by elected councils composed of popular representatives.

Impact, Challenges, and Global Case Study

• Quantitative Scale of Indian Decentralisation:
  • The system represents the largest operational democratic exercise globally, with approximately $36\text{ lakh}$ ($3.6\text{ million}$) elected representatives across rural and urban local bodies.
  • Total elected representatives in Indian local government exceed the total population of many independent nations.
• Persistent Administrative Challenges:
  • Irregular holding of Gram Sabha meetings.
  • Reluctance of many state governments to transfer statutory powers and fiscal resources to local self-governments.
• Case Study: Participatory Democracy in Porto Alegre, Brazil:
  • Porto Alegre introduced a parallel participative governance structure alongside its municipal council.
  • Approximately $13\text{ lakh}$ ($1.3\text{ million}$) citizens directly participate in municipal budget formulation.
  • The city is divided into administrative sectors/wards holding open public assemblies (similar to Gram Sabhas).
  • Nearly $20,000$ citizens participate annually in budget priority sessions, redirecting municipal expenditure toward public infrastructure in lower-income areas, slum rehabilitation, and public transport expansion.
  • A similar local development planning process was implemented in Kerala, India.

Case Questions and Discussion Scenarios

• Scenario 1: Pokharan Nuclear Tests
  • Context: Pokharan is located in Rajasthan. If the Government of Rajasthan opposes the Central Government's nuclear test policy, can it legally prevent the testing?
  • Legal Standard: No. Defence, nuclear energy, and foreign affairs fall under the exclusive jurisdiction of the Union List. State policy cannot override Union authority on these subjects.
• Scenario 2: Textbook Curriculum in Sikkim
  • Context: The Government of Sikkim plans to launch new school textbooks, but the Union Government disapproves of the content. Does Sikkim require Central permission?
  • Legal Standard: Education is listed on the Concurrent List. Both tiers hold legislative authority, but state governments can adopt state curriculum unless the Central Government enacts overriding federal legislation on the matter.
• Scenario 3: Anti-Naxalite Police Operational Policies
  • Context: The Chief Ministers of Andhra Pradesh, Chhattisgarh, and Odisha maintain divergent operational policies regarding Naxalite insurgencies. Can the Prime Minister issue a binding executive order commanding uniform compliance?
  • Legal Standard: Police and public order are subjects under the State List. The Prime Minister cannot issue direct operational orders overriding state authority, though joint security coordination and central assistance can be extended through inter-state consensus.