Federalism

Federalism is a concept where the powers of the Government are divided between the Centre and the State. Federalism gives a basic understanding of diversity and autonomy of regional power. Indian system of federalism is not rigid and has a blend of both federal and unitary form of Government but when there is a conflict between the Centre and the State, the power of the Centre overpowers the state. Constitution of India does not use the term ‘federation’, rather India is described as a ‘Union of States’.

The nature of Indian Federalism is different from the other models. The uniqueness of Indian Federalism lies in its context and it has expanded from an unitary system that was present during the British Period to a quasi-Federal System Post-Independence. Federalism is a pact to share powers of governance. What power will be distributed to the Centre and the State however is a question of historical context. These agreements of power sharing also evolved in India first through the Government of India Act 1935 which introduced federalism. Then in 1947 India attained independence and had to integrated Princley States, various tribal areas and strong linguistic regional aspirations all into one united country. This was reflected in the making of the Constitution where a Unitary system with federal features has been adopted.

The Indian Constitution has a system of federation where unitary features are also found which is why it is also known as quasi-federal. Federalism was adopted because the makers of the Indian Constitution wanted to uphold the principles of unity, diversity, demands for regional autonomy, demography and socio-economic development.

1. Holding Together Federalism: This type indicates the sharing of power between integral parts which can make room for diversity under one roof. Examples of such type of federalism are India and Belgium to name a few.
2. Coming Together Federalism: This is a type of federation where smaller units unite to form a larger group. The smaller states enjoy more independence as compared to holding together federalism. This type of federation can be seen in Switzerland, US and Australia.
3. Asymmetrical Federalism: This type of federalism gives more powers to particular units than others owing to historical and cultural reasons. Russia and Ethiopia form this type of federation.

The nature of Indian Federalism is highly debated:

• K.C Wheare said India is quasi-federal i.e. a unitary state with subsidiary federal principles,
• Ivor Jennings said that India is a federation with strong centralising tendency.
• Granville Austin mentioned Indian federalism as “cooperative federalism” creating synergy between governments by distributing essential powers and responsibilities between Centre & the State.

The word federalism is not mentioned in the Constitution, however it has been held to be basic structure of the constitution in the Bommai Case by the Supreme Court of India.

1. Division of Power: Primarily, federalism is reflected from the seventh schedule of the Indian Constitution which divides the subjects into Union List, State List and Concurrent List ( on which both Central & State Government can make laws).
2. The Constitution is Supreme: Constitution is the supreme law and all the States along with the Parliament and and State Legislature are bound to follow the provisions mentioned in the Constitution.
3. Indian Constitution is written: The Constitution of India is a written document which specifies how powers and functions between various organs have to be divided so that there are little misunderstandings. It checks both the Centre & State from overstepping. It does not let States be dependent on the Centre for their power.
4. Rigid Constitution: The Indian Constitution can not be quickly amended by the Centre to take away powers of the States. Infact, federal provisions can only be altered if ratification by half the State Legislatures is received.
5. Judiciary is Independent: Judiciary stands as the guardian of the Constitution and is an independent organ as per Article 50 of the Constitution. It makes sure that the federal features of the Constitution are upheld by both centre and state.
6. Bicameral Legislation: The Parliament at the Centre has representation from states directly in the Lok Sabha (House of the People) and also a special house called the Rajya Sabha (Council of States) has unique federal powers. Lok Sabha represents the people of India as a whole, while the Rajya Sabha represents the States and helps maintain equilibrium.

However, there are some unitary features to find this union in interest of stability, integrity and unity of nation in face of immense regional, geographic, linguistic, religious diversity.

1. Single Citizenship: All people are citizens of India, and not its constituent states.
2. A strong centre: Article 1 describes India as a Union of States. For subjects in Concurrent List, Centre has the power to overrule State laws.
3. Emergency Provisions: Under Article 356, Centre can directly rule a State by dismissing the State Government in emergency situations. Under Article 352, during a financial emergency directions can be given for budgetary allocation and use.
4. Only one constitution for centre and state: There is only one constitution for both the centre and the state.
5. Centre has authority to change or alter the boundaries of the State: Article 3 of the Constitution authorises the Centre to alter the boundary of the state, reduce the area of the state.
6. Common All India Services: To ensure uniformity of the Indian Administrative system and central control over government apparatus.
7. Role of Governor: The constitutional head of the state i.e. the Governor, under Article 153, is appointed by the President to appoint a Governor for states. Governor has been controversial for being used by Centre to withold important bills for veto or dismissing the State governments without floor test etc.
8. Goods & Services Tax: The 101st Amendment Act reformed India's tax system by introducing a unified Goods and Services Tax (GST). This new tax, jointly governed by Parliament and State Legislatures, replaced numerous indirect taxes and aimed to eliminate cascading effects and create a seamless national market for goods and services.

Federalism is ever changing due to economic, social and political factors. There are many challenges before Indian federalism in today’s time:

1. Regionalism: Various regions have wanted to seek more power and autonomy and some even have violent secessionist movements like Khalistan movement.
2. Conflict of Language: Due to the existence of regional language, there is no language that is considered as a national language, infact imposition of any one language is thoroughly detested by various states.
3. The indestructible union and destructible units: To protect the integrity and unity of the nation, states of the Union are made destructible e.g. State of Jammu & Kashmir was dissolved and new state of Telangana was created.
4. Unequal Representation of Units: States are not represented in a proportionate manner, for example, Uttar Pradesh has 80 seats in Lok Sabha whereas Sikkim has only 1. This population based representation affects state which are responsibly implementing population control measures. This affects resource allocation between states.

Various commissions have been setup to review relations between Centre & State and have provided recommendations to boost Federalism.

• 2nd Administrative Reforms Commission (ARC), 1969 recommended that governors be non partisan and that more financial resources should be allocated to State.
• Sarkaria Commission Report in 1983: Recommended that a permanent Inter-State Council under article 263 can help mediate Centre- State issues in a cooperative manner. President’s Rule should be use sparingly. Other recommendations included greater tax sharing, allowing autonomy to states and consulting states on Concurrent List items/ laws.
• Punchhi Commission, 2010:
  • Cooperative federalism, where different levels of government work together collaboratively, is crucial for maintaining India's unity, integrity, and progress in various areas like social and economic development.
  • Reiterated the recommendations made by Sarkaria Commission on the role and appointment of Governor so that there is minimal interference in the functioning of State government. It recommended:
  • setting up an Inter-State Trade and Commerce Commission under Article 307
  • Increase distribution of taxes/ cess revenue with States.
  • New all-India services in sectors like health, education, engineering and judiciary should be created.
  • For invoking State Emergency under Article 356, guidelines of the SR Bomma Case must be adhered to.

Various commissions have been setup to review relations between Centre & State and have provided recommendations to boost Federalism.

• Cooperative federalism is where states readily collaborate with the central government in implementing policies. The NITI Aayog replaced the centralised Planning Commission to effectuate this vision. Now all states are equal participants in the planning process. 101 Constitutional Amendment Act strengthened fiscal federalism by creating a Goods and Services Tax Council, where both central and state governments have a say in determining tax rates and policy. This fostered inter-governmental cooperation and addressed long-standing issues of revenue sharing.
• Competitive Federalism means when states compete to improve performance in governance mechanisms to boost overall citizen welfare. E.g. the NITI Aayog does MultiDimensional Poverty Index, State Health Index and State Energy Index etc.
• Uncooperative federalism is a concept that describes situations where states, despite holding less power than the central government, actively resist or challenge its mandates through various means. This differs from the more traditional view of "cooperative federalism," where states readily collaborate with the central government in implementing policies. It was discussed by Supreme Court in Mohit Minerals Case. States can use legislative resolution and public statements to disagree with the Central government. They can exploit loopholes to implement their own policies and resort to civil disobedience through non violent protests. This process strengthens democracy by checking uncontested power of the Centre and promoting healthy debate to refine policies.
• Complementary Nature of Cooperative & Uncooperative Federalism: Both forms of interaction exist within the federal system, with the specific balance shifting depending on the issue at hand and the political context.

Federalism is a basic structure of the Indian constitution, meaning that it can not be abridged or destroyed by way of an amendment. India maintains a balance between unitary and federal features of the Indian Constitution. Further, Federalism can be strengthened by enhancing decentralisation of powers and resources to the state, increasing the share of states in Central Taxes, giving fiscal autonomy (e.g. recommendations of 15th Finance Commission for greater share of States in taxes was accepted) and being flexible to federal component’s demands.