Notes on the Chapter : Federalism

Chapter 2 : Federalism

Federalism 

Federalism is a system of government in which the power is divided between a central authority and various constituent units of the country.

Difference between Federal and Unitory form of Government

Federal Government	Unitary Government
1. Powers are divided between central and state governments.	1. All powers are concentrated in the central government.
2. Each level of government has its own authority.	2. Local governments derive their powers from the central authority.
3. State government is not answerable to the central government.	3. Sub-units are subordinate to the central government.
4. The central government cannot directly order state governments.	4. The central government can give direct orders to states.
Examples: India, USA	Examples: France, UK

Key Conditions for Federalism

1. Federalism can be adopted by any country, regardless of its size, population, or level of development. 
2. The key condition for federalism is the presence of diversity—such as differences in language, culture, religion, or region. 
3. When such diversity exists, there is a possibility of conflict among different groups.
4. To avoid these conflicts and ensure unity, power sharing becomes essential. 
5. Federalism provides an effective system of power sharing by dividing powers between the central and state governments. 

Key Features of Federalism

1. There are two or more levels (or tiers) of government.
2.  Different tiers of government 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 or tiers of government are specified in the constitution. 
4. The fundamental provisions of the constitution cannot be changed unilaterally by one level of government. Such changes require the consent of both the levels of government.
5. The highest court (Judiciary)  acts as an umpire if disputes arise between different levels of government.
6. Sources of revenue for each level of government are clearly specified to ensure its financial autonomy. 
7. The federal system has dual objectives: To safeguard and promote unity of the country and Accommodate regional diversity. 
8. An ideal federal system has both aspects : Mutual trust and Agreement to live together. 

Types of Federation

1. There are two kinds of routes through which federations have been formed.

Basis of Difference	Coming Together Federation	Holding Together Federation
Meaning	Independent states come together to form a larger unit	A large country divides power between central and state governments
Formation	Formed by agreement among states	Formed by dividing an existing country
Purpose	To increase security while retaining identity	To maintain unity and manage diversity
Power Distribution	States have equal power and are strong compared to the centre	Central government is more powerful than states
Equality of States	All states usually have equal powers	States may have unequal powers; some get special powers
Examples	USA, Switzerland, Australia	India, Spain, Belgium

What makes India a Federal Country?

1. India as a Union of States

The Constitution declares India as a Union of States. Though the word “federation” is not explicitly used, the Indian system is based on the principles of federalism.

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2. Division of Powers

The Constitution provides a three-fold distribution of legislative powers between the Union and State Governments:

a) Union List

1. Includes subjects of national importance such as defence, foreign affairs, banking, communications, and currency.
2. A uniform policy is required across the country.
3. Only the Union Government can make laws on these subjects.

b) State List

1. Includes subjects of state and local importance such as police, agriculture, trade, commerce, and irrigation.
2. Only the State Governments can make laws on these subjects.

c) Concurrent List

1. Includes subjects of common interest like education, forests, trade unions, marriage, adoption, and succession.
2. Both Union and State Governments can make laws.
3. In case of conflict, Union law prevails.

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3. Residuary Powers

• Subjects not included in any of the three lists (e.g., modern subjects like computer software) are called residuary subjects.
• Union Government has the power to legislate on these matters.

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4. Unequal Powers Among States

India follows a ‘holding together’ federation, so all states do not have equal powers.

• States like Assam, Nagaland, Arunachal Pradesh, and Mizoram have special powers under Article 371.
• These powers protect:

1. Land rights of indigenous people
2. Culture and traditions
3. Preferential government employment

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5. Union Territories

• Some regions are too small to be states and are called Union Territories (e.g., Chandigarh, Lakshadweep, Delhi).
• They have limited powers, and the Central Government has greater control.

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6. Rigidity of the Constitution

• The division of powers is a basic structure of the Constitution.
• It cannot be changed easily:
• Requires two-thirds majority in Parliament
• Must be approved by at least half of the State legislatures

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7. Role of Judiciary

• The Supreme Court and High Courts interpret the Constitution.
• They settle disputes between Union and State Governments regarding power distribution.

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8. Financial Autonomy

• Both Union and State Governments have the power to levy taxes.
• This ensures they can perform their respective responsibilities.

How is Federalism Practised in India?

1. Role of Democratic Politics

• Constitutional provisions alone are not sufficient for the success of federalism. 
• The success of federalism in India is mainly due to democratic politics, which promotes the spirit of federalism, respect for diversity, and the desire for unity.

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2. Linguistic States

The creation of linguistic states was the first major test of Indian democracy.

• After 1947, the boundaries of states were reorganised so that people speaking the same language could live together.
• Some states like Nagaland, Uttarakhand, and Jharkhand were created based on culture, ethnicity, or geography.
• Although there was fear that linguistic states might lead to disintegration, they actually strengthened national unity and made administration easier.

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3. Language Policy

India adopted a flexible and inclusive language policy.

• No language was given the status of a national language.
• Hindi was made the official language, but it is spoken by only about 40% of the population.
• According to the Constitution, the use of English for official purposes was supposed to end in 1965.
• However, due to demands from non-Hindi speaking states like Tamil Nadu, English continues to be used along with Hindi.
• Besides Hindi, 21 languages are recognised as Scheduled Languages. 
• States have their own official languages.
• People can take Central Government exams in any of these languages.
• The government promotes Hindi but does not impose it, which helped maintain unity.

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4. Centre-State Relations

The success of federalism also depends on political practice.

• Earlier, one party ruled both at the Centre and in most states, limiting state autonomy.
• The Central Government often misused its power to dismiss state governments.
• After 1990 there was Rise of regional parties
• Beginning of coalition governments
• Greater respect for state autonomy

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5. Role of Judiciary

The Supreme Court and High Courts play an important role in maintaining federalism.

• They interpret the Constitution
• They resolve disputes between the Centre and the States
• They prevent misuse of power by the Central Government

Decentralisation in India

When power is taken away from Central and State governments and given to local government, it is called decentralisation.

A major step towards decentralisation was taken in 1992. 

1. It is constitutionally mandatory to hold regular elections to local government bodies. 
2. An independent institution State Election Commission conduct panchayat and municipal elections. 
3. Seats are reserved in the elected bodies and the executive heads of these institutions for the Scheduled Castes, Scheduled Tribes and Other Backward Classes. 
4. At least one-third of all positions are reserved for women. 
5. The State governments are required to share some powers and revenue with local government bodies.

Three Tier Panchayat Raj System (Local Self Government)

Level	Body Name	Composition	Head	Functions / Role
RURAL LOCAL GOVERNMENT
Village Level	Gram Panchayat	Ward members + Sarpanch	Sarpanch	Village decision-making
Village Assembly	Gram Sabha	All voters	No fixed head	Budget approval & review
Block Level	Panchayat Samiti	Elected members	Chairperson	Block development
District Level	Zilla Parishad	Elected + MPs + MLAs	Chairperson	District development
URBAN LOCAL GOVERNMENT
Town Level	Municipality	Elected representatives	Chairperson	Town administration
City Level	Municipal Corporation	Elected representatives	Mayor	City administration

Three Tier Panchayat Raj System (Local Self Government)