Federalism Notes

Federalism Overview

  • Vertical division of power among different levels of government is a major form of power-sharing in modern democracies.
  • This chapter focuses on federalism, a common term for this power-sharing arrangement.
  • The chapter will:
    • Describe federalism in general terms.
    • Understand the theory and practice of federalism in India.
    • Discuss federal constitutional provisions.
    • Analyze policies and politics that have strengthened federalism in practice.
    • Examine local government as a new and third tier of Indian federalism.

What is Federalism?

  • Federalism is a system of government where power is divided between a central authority and constituent units (provinces or states).
  • Only 25 of the world’s 193 countries have federal systems, but their citizens comprise 40% of the world’s population.
  • Most large countries are federations.
  • Belgium shifted from a unitary to a federal form of government in 1993 by granting constitutional powers to regional governments that were no longer dependent on the central government.
  • Sri Lanka remains a unitary system where the national government holds all the powers; Tamil leaders desire a federal system.
  • A federation typically has two levels of government:
    • One for the entire country, responsible for subjects of common national interest.
    • The other at the level of provinces or states, handling day-to-day administration.
  • Both levels operate independently of each other.
  • The federal system aims to:
    • Safeguard and promote the unity of the country.
    • Accommodate regional diversity.
  • Crucial aspects for successful federalism:
    • Agreement on rules of power-sharing between different levels.
    • Mutual trust that each level will adhere to the agreement.
  • The balance of power between the central and state governments varies based on the historical context of the federation’s formation.

Two Routes to Forming Federations

  • Coming Together Federations: Independent states unite to form a larger unit, pooling sovereignty while retaining identity to increase security. Examples include the USA, Switzerland, and Australia. Constituent states typically have equal power and are strong relative to the federal government.
  • Holding Together Federations: A large country decides to divide its power between constituent states and the national government. Examples include India, Spain, and Belgium. The central government tends to be more powerful, and constituent units may have unequal powers with some granted special powers.

Key Features of Federalism

  1. Two or More Levels of Government: There are multiple tiers of government.

  2. Jurisdiction: Different tiers govern the same citizens, but each has its own jurisdiction in specific matters of legislation, taxation, and administration. Jurisdiction refers to the area over which someone has legal authority, defined geographically or by subject.

  3. Constitutional Guarantee: The jurisdictions of each tier are specified in the constitution, guaranteeing their existence and authority.

  4. Constitutional Amendment: Fundamental provisions of the constitution cannot be unilaterally changed; both levels of government must consent.

  5. Role of Courts: Courts can interpret the constitution and the powers of different government levels. The highest court acts as an umpire in disputes between levels.

  6. Financial Autonomy: Sources of revenue for each level are clearly specified to ensure financial autonomy.

    In unitary systems, there is only one level of government, or sub-units are subordinate to the central government, which can issue orders to provincial or local governments. In federal systems, the central government cannot order state governments, which have their own powers and are directly answerable to the people.

Federalism in India

  • India is declared a "Union of States," and while the term 'federation' is not used, the Indian Union is based on federalism principles.
  • The Constitution originally provided for a two-tier system: Union Government (Central Government) and State Governments.
  • A third tier was later added: Panchayats and Municipalities.
  • These tiers enjoy separate jurisdiction, with a three-fold distribution of legislative powers.
  • Three lists define the distribution of legislative powers:
    • Union List: Includes subjects of national importance like defence, foreign affairs, banking, communications, and currency, on which the Union Government alone can make laws to ensure uniform policy throughout the country.
    • State List: Includes subjects of state and local importance like police, trade, commerce, agriculture, and irrigation, on which State Governments alone can make laws.
    • Concurrent List: Includes subjects of common interest to both Union and State Governments like education, forest, trade unions, marriage, adoption, and succession, on which both can make laws. If laws conflict, the Union Government's law prevails.
  • The Union Government has the power to legislate on residuary subjects (subjects not in any of the three lists, such as computer software).
  • Indian states do not have identical powers; some enjoy special status under Article 371 due to their social and historical circumstances, including protection of land rights, culture, and preferential employment. This applies to states like Assam, Nagaland, Arunachal Pradesh and Mizoram.
  • Union Territories (e.g., Chandigarh, Lakshadweep, Delhi) have very little power and are directly administered by the Central Government.
  • Changes to the power-sharing arrangement require a two-thirds majority in both Houses of Parliament and ratification by legislatures of at least half the total states.
  • The judiciary, including High Courts and the Supreme Court, oversees the implementation of constitutional provisions and resolves disputes about the division of powers.
  • Both Union and State Governments can raise resources by levying taxes.

How Federalism is Practiced in India

  • The success of federalism in India is attributed to democratic politics, respect for diversity, and the desire for living together.
  • Linguistic States: In 1947, old states were reorganized to create new states based on common languages. Some states were created to recognize differences based on culture, ethnicity, or geography (e.g., Nagaland, Uttarakhand, and Jharkhand).
  • Language Policy: The Constitution did not designate a national language. Hindi was identified as the official language, but with safeguards for other languages. Besides Hindi, there are 22 other languages recognized as Scheduled Languages. Candidates for Central Government positions can take examinations in any of these languages. States also have their own official languages. The use of English for official purposes was to stop in 1965, but was continued alongside Hindi due to demands from non-Hindi speaking states.
  • Centre-State Relations: For a long time, the same party ruled at the Centre and in most states, limiting the states' autonomy. The Central Government would sometimes misuse the Constitution to dismiss state governments controlled by rival parties, undermining federalism.
  • Since 1990, regional political parties have risen, leading to coalition governments at the Centre. This has fostered power-sharing and respect for state autonomy. The Supreme Court has also made it more difficult for the Central Government to dismiss state governments arbitrarily.

Linguistic Diversity of India

  • The Census of India 2011 recorded more than 1300 distinct languages as mother tongues, which were then grouped under major languages like Hindi.
  • Even after grouping, the Census found 121 major languages; 22 languages are included in the Eighth Schedule of the Indian Constitution and are called ‘Scheduled Languages’.
  • Hindi is the mother tongue of about 44% of Indians. Including those who know Hindi as a second or third language, the total was still less than 50% in 2011. Only 0.02% of Indians recorded English as their mother tongue, with another 11% knowing it as a second or third language.

Decentralization in India

  • A third-tier of government, local government, was created through decentralization, where power is taken away from Central and State governments and given to local governments.
  • The basic idea is that local problems and issues are best settled at the local level where people have better knowledge.
  • Local government allows people to directly participate in decision-making, promoting democratic participation and local self-government.
  • Panchayats in villages and municipalities in urban areas were set up, but were under the control of state governments, with irregular elections and limited powers or resources.
  • A major step towards decentralization was taken in 1992 when the Constitution was amended to make the third-tier more powerful and effective.
    • Regular elections to local government bodies are now constitutionally mandatory.
    • Seats are reserved for Scheduled Castes, Scheduled Tribes, and Other Backward Classes.
    • At least one-third of all positions are reserved for women.
    • An independent State Election Commission has been created in each State to conduct panchayat and municipal elections.
    • State governments are required to share some powers and revenue with local government bodies.
  • Rural local government is known as panchayati raj. Each village, or a group of villages, has a gram panchayat consisting of ward members (panch) and a president (sarpanch), directly elected by the adult population.
  • The panchayat works under the supervision of the gram sabha, which includes all the voters in the village. It meets at least twice or thrice a year to approve the annual budget and review performance.
  • A few gram panchayats are grouped together to form a panchayat samiti or block or mandal. Members of this representative body are elected by all the panchyat members in that area.
  • All the panchayat samitis or mandals in a district constitute the zilla (district) parishad. Most members are elected. Members of the Lok Sabha and MLAs of that district and some other officials of other district level bodies are also its members. Zilla parishad chairperson is the political head of the zilla parishad.
  • Municipalities are set up in towns, and municipal corporations in big cities, controlled by elected bodies consisting of people’s representatives. Municipal chairperson is the political head of the municipality. In a municipal corporation, such an officer is called the mayor.
  • There are now about 36 lakh elected representatives in the panchayats and municipalities all over the country.
  • While elections are held regularly, gram sabhas are not held regularly, and most state governments have not transferred significant powers or adequate resources to the local governments.

Experiment in Brazil

  • Porto Alegre has set up a parallel organization operating alongside the municipal council, enabling local inhabitants to take real decisions for their city.
  • The nearly 13 lakh people in this city get to participate in making the budget for their own city.
  • Each sector has a meeting, like that of the gram sabha, in which anyone living in that area can participate.
  • Any citizen of the city can participate in those meetings to discuss issues that affect the entire city.
  • About 20,000 people participate in this decision making exercise every year.
  • This method has ensured that the money cannot be spent only for the benefit of the colonies where rich people live. Buses now run to the poor colonies and builders cannot evict slum-dwellers without resettling them.