Federalism

1. Chapter at a Glance

In the previous chapter we saw that vertical division of power among different levels of government is a major form of power sharing. This chapter focuses on that form — federalism. It explains what federalism is, its key features, the two routes by which federations are formed, how India became a federal country, how federalism is practised through linguistic States, language policy and centre–State relations, and how power was further decentralised to local government through the 73rd and 74th Amendments.

2. Key Features of Federalism

1. There are two or more levels (tiers) of government.
2. Different tiers govern the same citizens, but each tier has its own jurisdiction in specific matters of legislation, taxation and administration.
3. The jurisdictions of the respective levels are specified in the constitution, so the existence and authority of each tier 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 levels.
5. Courts have the power to interpret the constitution and the powers of different levels; the highest court acts as an umpire if disputes arise between levels.
6. Sources of revenue for each level are clearly specified to ensure its financial autonomy.
7. The federal system has dual objectives: to safeguard and promote the unity of the country, while also accommodating regional diversity.

Thus the ideal federal system has two aspects: mutual trust and agreement to live together. The exact balance of power between the central and State governments varies from one federation to another, depending mainly on the historical context in which the federation was formed.

3. What Makes India a Federal Country?

After Partition, India's diversity — of languages, regions and religions — made a federation natural. The Constitution declared India a Union of States. Though it did not use the word "federation", the Indian Union is based on the principles of federalism. The Constitution originally provided for a two-tier system — the Union government and State governments; a third tier, Panchayats and Municipalities, was added later.

• Not all States have identical powers. Some States enjoy a special status under certain provisions of the Constitution (Article 371) — for example, several north-eastern States, because of their distinct social and historical circumstances; Indian citizens from other States cannot buy land or houses there in some cases. (Jammu and Kashmir had special status under Article 370 until it was revoked in August 2019, when J&K and Ladakh were made Union Territories.)
• Union Territories — areas too small to become independent States or that could not be merged with existing States — such as Chandigarh, Lakshadweep or Delhi (the capital), do not have the powers of a State; the Union government has special powers in running them.
• Sharing of power between the Union and State governments is basic to the structure of the Constitution. It is not easy to make changes to this arrangement — Parliament cannot change it on its own; changes must first be passed by both Houses of Parliament with at least a two-thirds majority, then ratified by the legislatures of at least half of the total States.
• The judiciary plays an important role in overseeing implementation of constitutional provisions and procedures; in case of disputes about division of powers, the High Courts and the Supreme Court decide.
• The Union and State governments have the power to raise resources by levying taxes to carry on the government and the responsibilities assigned to each (since 2017, the Goods and Services Tax is shared through the GST Council of Union and State finance ministers).

4. How Is Federalism Practised?

Constitutional provisions are necessary but not sufficient; the real success of federalism in India comes from the nature of democratic politics. This has ensured that the spirit of federalism, respect for diversity and the desire for living together became shared ideals.

Linguistic States

The creation of linguistic States was the first and a major test for democratic politics. In 1947 the boundaries of several old States were changed to create new States so that people who spoke the same language lived in the same State; some States were created on the basis of culture, ethnicity or geography (Nagaland, Uttarakhand, Jharkhand). When the demand first arose, some national leaders feared it would lead to disintegration, and the Union government resisted for some time. But experience shows that the formation of linguistic States has actually made the country more united and administration easier. (The States Reorganisation Act came in 1956.)

Language policy

Our Constitution did not give the status of national language to any one language. Hindi was identified as the official language, but it is the mother tongue of only about 40% of Indians, so there were many safeguards to protect other languages. Besides Hindi, there are 21 other languages recognised as Scheduled Languages (22 in all). A candidate in an examination for Union government positions may choose to write in any of these languages. States have their own official languages; much of State government work takes place in the official language of the State.

Unlike Sri Lanka, the leaders of our country adopted a very cautious attitude in spreading the use of Hindi. According to the Constitution, the use of English for official purposes was to stop in 1965. However, many non-Hindi-speaking States demanded that English continue; in Tamil Nadu this movement took a violent form. The Union government responded by agreeing to continue English along with Hindi for official purposes. Promotion of Hindi continues to be the official policy, but promotion does not mean imposition on non-Hindi-speaking States. The flexibility shown by Indian political leaders helped our country avoid the kind of situation Sri Lanka faced.

Centre–State relations

Restructuring Centre–State relations is one more way federalism has been strengthened in practice. For a long time the same party ruled both at the Centre and in most States, so State governments did not exercise their rights as autonomous federal units; when the ruling party at State level was different, the Centre often undermined States' power and misused the Constitution to dismiss State governments controlled by rival parties. All this changed significantly after 1990, with the rise of regional political parties in many States and the beginning of the era of coalition governments at the Centre. Since no single party got a clear majority in the Lok Sabha, major national parties had to enter alliances with regional parties, leading to a new culture of power sharing and respect for the autonomy of State governments. This trend was supported by a major judgement of the Supreme Court (the S.R. Bommai case, 1994) that made it difficult for the Centre to dismiss State governments arbitrarily.

5. Decentralisation in India

When power is taken from the central and State governments and given to local government, it is called decentralisation. The basic idea is that there are many problems and issues best settled at the local level — people have better knowledge of problems in their localities, they know where to spend money and how to manage things efficiently, and local people can participate directly in decision-making, inculcating democratic participation. Local government is the best way to realise one important principle of democracy — local self-government.

Before 1992, local governments existed but were directly under State governments; elections were not held regularly; and local governments had no powers or resources of their own. A major step towards decentralisation was taken in 1992, when the Constitution was amended to make the third tier more powerful and effective:

• It is now constitutionally mandatory to hold regular elections to local government bodies.
• Seats are reserved in the elected bodies and the executive heads of these institutions for Scheduled Castes, Scheduled Tribes and Other Backward Classes.
• At least one-third of all positions are reserved for women.
• An independent institution called the 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; the nature of sharing varies from State to State.

This new system of local government is the largest experiment in democracy conducted anywhere in the world. There are now about 36 lakh elected representatives in panchayats and municipalities across the country (textbook figure) — bigger than the population of many countries. Constitutional status has deepened democracy and increased women's representation and voice. But difficulties remain: Gram Sabhas are not held regularly in many places, and most State governments have not transferred significant powers and adequate resources to local bodies; so we are still far from the ideal of self-government.

6. Master Table: Key Terms

7. Master Summary Table

Chart — share of Indians with Hindi as mother tongue (approx.):

8. Mind Map

9. Tips and Tricks

10. Important One-liners

• India is described as a Union of States.
• Computer software is a residuary subject.
• Union law prevails in Concurrent List conflicts.
• Constitutional changes to power sharing need two-thirds of Parliament and half the States.
• India has 22 Scheduled Languages.
• English continued with Hindi after 1965 protests.
• Coalition era at the Centre began after 1990.
• The 1992 amendments created a strong third tier.
• One-third of local body seats are reserved for women.
• State Election Commissions conduct local elections.
• The Gram Sabha supervises the gram panchayat.

11. Previous-Year-Pattern Questions with Detailed Answers

12. Quick Revision Summary