The concept of federalism has been around for centuries, and it has been
implemented in a variety of ways in different countries. In the United States,
for example, the federal system was established in the late 18th century as
a way to balance the power of the central government with the rights of
the individual states.
• To understand federalism, we can compare the cases
of Belgium and Sri Lanka.
• Belgium's shift to a federal system in 1993 is a significant example.
• Previously, regional governments in Belgium had powers that could
be revoked by the central government.
• The 1993 constitutional change granted these regional governments
permanent, constitutionally protected powers, marking a transition
from a unitary to a federal system.
• In contrast, Sri Lanka remains a unitary state, where the central
government holds all major powers.
• There is ongoing debate, particularly among Tamil leaders, about the
need for Sri Lanka to adopt a federal system to
accommodate regional demands and differences better.
• This chapter will delve into the principles of federalism and how
different countries implement it to address diverse regional needs
and conflicts.
What is Federalism?
(i) Federalism is a political system that involves the division of power
between a central government and regional or state governments.
(ii) This division of power is enshrined in a country's constitution, and it
typically involves the central government retaining certain powers, while
other powers are reserved for the regional governments.
(iii) Federations are contrasted with unitary governments.
(iv) Under the unitary system, either there is only one level of government
or the sub-units are subordinate to the central.
(v) In a federal system, the central government cannot order the state
government to do something.
Federalism has two levels of government:
(a) One is the government for the entire country that is (Central
Government) usually responsible for a new subject of common national
interest.
(b) The others are governments at the level of provinces or states that look
after much of the day-to-day administering of their state.
Seven Key Features of Federalism
1. Multiple Levels of Government: Federalism features two or more
levels (or tiers) of government.
2. Distinct Jurisdictions: Different levels of government govern the
same citizens, with each having authority over specific areas such as
legislation, taxation, and administration.
3. Constitutional Authority: The constitution defines and guarantees
the powers of each level of government, ensuring their existence and
authority are protected.
4. Amendment Process: Fundamental constitutional provisions cannot
be altered by just one level of government; such changes need
approval from both levels.
5. Judicial Oversight: Courts interpret the constitution and resolve
disputes between different government levels, with the highest court
serving as an impartial adjudicator.
6. Revenue Allocation: The constitution specifies the revenue sources
for each level of government to maintain financial independence and
autonomy.
7. Unity and Diversity: Federalism aims to balance national unity with
regional diversity, requiring mutual trust and agreed-upon power-
sharing rules between levels of government.
There are two kinds of routes through which federations have been
formed.
(a) The first route involves independent States coming together on their
own to form a bigger unit so that by pooling sovereignty and retaining
identity they can increase their security. This is ‘coming
together’ federations.
(b) The second route is where a large country decides to divide its power
between the constituent States and the national government. This
is ‘holding together’ federations.
What makes India a Federal Country?
(i) India is a federal country because its political system is based on
the division of power between the central government and state
governments.
(ii) This division of power is enshrined in the Indian Constitution, which
outlines the responsibilities and powers of both levels of government.
(iii) The constitution declared India as the Union of States.
(iv) The Constitution originally provided for a two-tier system of
government, the Union Government or what we call the Central
Government, representing the Union of India and the State Government.
(v) Later the third tier of federalism was added in the form of Panchayats
and municipalities.
The Constitution has a three-fold distribution of legislative powers between
the Union Government and the State Governments.
The Constitution contains three Lists:
(i) Union Lists:
In India, the Union List is a list of subjects that are exclusively within the
jurisdiction of the central government. This means that only the Union
Government, which is another term for the central government, has the
authority to make laws relating to these subjects.
It includes subjects of national importance such as the defense of the
country, foreign affairs, banking, communications and currency.
(ii) State Lists:
In India, the State List is a list of subjects that are exclusively within the
jurisdiction of the state governments. This means that only the state
governments have the authority to make laws relating to these subjects.
It contains subjects of States and local importance such as police, trade,
commerce, agriculture and irrigation.
(iii) Concurrent List:
Both the Union as well as the State Governments can make laws on the
subjects mentioned in this list. If their laws conflict with each other, the law
made by the Union Government will prevail.
It includes subjects of common interest to both the Union Governments,
such as education, forest, trade unions, marriage, adoption and succession.
- Unequal Power Distribution in Indian States:
• In federations formed by "holding together," constituent units often
have unequal powers.
• In India, not all states have the same level of authority.
- Special Status for Certain States:
• Some states, such as Assam, Nagaland, Arunachal Pradesh, and
Mizoram, have special powers under Article 371 of the Constitution
due to unique social and historical factors.
• These powers protect indigenous land rights, culture, and offer
preferential treatment in government jobs.
• Non-residents are restricted from purchasing land or property in
these states.
- Union Territories and Limited Powers:
• Certain regions in India, including Chandigarh, Lakshadweep, and
Delhi, are classified as Union Territories.
• These areas are too small to be independent states and therefore
have limited powers, with the Central Government holding special
authority over them.
- Power Sharing Between Union and State Governments:
• The sharing of power between the Union and State Governments is
fundamental to the Constitution's structure.
• Altering this power-sharing arrangement is difficult and requires
approval from both Houses of Parliament with a two-thirds
majority, followed by ratification by at least half of the state
legislatures.
- Judicial Oversight and Dispute Resolution:
• The judiciary, especially the High Courts and the Supreme Court,
plays a critical role in overseeing the implementation of
constitutional provisions and resolving disputes regarding the
division of powers.
- Taxation and Resource Allocation:
• Both the Union and State Governments have the authority to levy
taxes to fund their operations and fulfill their responsibilities.
How is Federalism Practiced?
Federalism is practiced in India through a system of shared governance, in
which power is divided between the central government, state
governments, and local governments.
Each level of government has its own set of responsibilities and powers,
which are outlined in the Indian Constitution.
• At the national level, the central government is responsible for issues
of national importance, such as defence, foreign affairs, and currency.
• At the state level, state governments are responsible for issues that
are more local, such as education, healthcare, and law and order.
• At the local level, India has established a third tier of government
through the creation of Panchayati Raj institutions. These local
governing bodies have been granted significant powers and
responsibilities by the Constitution, such as the authority to manage
local public works projects, collect local taxes, and regulate local
industries.
Note: In addition, both the central government and state governments have
the authority to make laws related to subjects listed in the Concurrent List,
which includes areas such as health, education, and social welfare.
Linguistic States
The creation of linguistic states was the first and a major test for
democratic politics in our country. Many old States have vanished and many
new States have been created.
• In 1947, the boundaries of several old states of India were changed
to create new States.
• This was done to ensure that people who spoke the same
language lived in the same States.
• When the demand for the formation of States based
on language was raised, some national leaders feared that it would
lead to the disintegration of the country.
Language Policy
1. Language Policy and No National Language:
• The Indian Constitution does not designate a national language.
• Hindi is recognized as the official language, but as it is the mother
tongue of only about 40% of Indians, various safeguards are in place
to protect other languages.
2. Scheduled Languages and Examination Flexibility:
• In addition to Hindi, the Constitution recognizes 22 Scheduled
Languages.
• Candidates appearing for Central Government exams can choose to
take them in any of these languages.
• States also have their own official languages, which are used for most
governmental work.
3. Cautious Spread of Hindi:
• Unlike in Sri Lanka, Indian leaders took a careful approach
in promoting Hindi.
• Initially, the Constitution planned to cease the use of English for
official purposes by 1965.
• However, after protests, particularly in Tamil Nadu, the Central
Government agreed to continue using English alongside Hindi.
4. Criticism and Continued Promotion of Hindi:
• Critics argue that continuing the use of English benefits the English-
speaking elite.
• Despite this, the Government of India continues to promote Hindi,
though it does not impose it on non-Hindi-speaking states.
• The flexibility of Indian leaders in handling the language issue has
helped avoid conflicts like those seen in Sri Lanka.
Centre-state Relations
1. Strengthening Federalism Through Centre-State Relations:
• Restructuring Centre-State relations has played a significant role in
strengthening federalism in India.
• The effectiveness of constitutional power-sharing largely depends on
how ruling parties and leaders adhere to these arrangements.
2. Dominance of a Single Party:
• For a long time, the same party governed both the Centre and most
States, leading to State Governments not fully exercising their
autonomy as federal units.
• When different parties governed the Centre and the States, the
Central Government often attempted to undermine State powers,
weakening the federal spirit.
3. Misuse of Constitutional Powers:
• In the past, the Central Government frequently misused its
constitutional authority to dismiss State Governments led by rival
parties, which eroded the essence of federalism.
4. Rise of Regional Parties and Coalition Governments:
• This dynamic changed significantly after 1990, with the rise of
regional political parties in many States.
• This era also marked the beginning of coalition governments at the
Centre, where major national parties had to ally with regional parties
to form a government due to the lack of a clear majority in the Lok
Sabha.
Decentralization in India
Need for a Third Tier: India's vast size and diversity require more than just
two levels of government. A third tier, local government, was created for
more effective power sharing.
Concept of Decentralization: Decentralization involves transferring power
from Central and State governments to local governments, enabling local
problem-solving and encouraging democratic participation.
Initial Challenges: Early attempts at decentralization were limited. Local
governments lacked power, resources, and regular elections.
1992 Constitutional Amendment:
A significant step towards effective decentralization was taken with
the 1992 amendment, which empowered local governments.
• Key Features of the Amendment:
• Mandatory regular elections for local bodies.
• Reservation of seats for Scheduled Castes, Scheduled Tribes, Other
Backward Classes, and women.
• Creation of State Election Commissions for local elections.
• Requirement for State governments to share powers and revenue
with local bodies.
• Structure of Rural Local Government Known as Panchayati Raj, it
includes: Gram Panchayat: Decision-making body for villages,
supervised by the Gram Sabha. Panchayat Samiti: Grouping of
several Gram Panchayats at the block level. Zilla Parishad: District-
level body with elected members and the Zilla Parishad chairperson
as the political head.
Urban Local Government:
Municipalities for towns and municipal corporations for big cities, both
controlled by elected representatives.
The political head is the municipal chairperson or mayor.
