Chapter 2 Federalism

Overview

This chapter explains the concept of federalism as a system of power-sharing between different levels of government, typically the central authority and constituent units (states or provinces). It contrasts federalism with unitary systems and outlines the key features of federal governments, emphasizing the constitutional division of powers and guarantees. Using Belgium's model of accommodation and Sri Lanka's majoritarian approach as examples, the chapter highlights the necessity of power-sharing for unity and stability. It then examines how federalism is practiced in India, discussing the constitutional division of powers, language policy, center-state relations, and the significant step of decentralisation through local governments.

What Is Federalism?

Federalism is a system of government where power is divided between a central authority and constituent units (like states or provinces). Each level of government has its own jurisdiction, specified in the constitution, and is guaranteed its existence and authority. This division ensures that neither level can unilaterally change the fundamental provisions of the constitution. Federal systems aim to balance national unity with regional diversity, ensuring that both levels of government are accountable to the people.

Key features of federalism include:

• Two or more levels of government.
• Different tiers govern the same citizens but have distinct jurisdictions (legislation, taxation, administration).
• Constitutional division of powers.
• Fundamental constitutional provisions require consent from both levels for changes.
• Independent judiciary to interpret the constitution and resolve disputes.
• Clearly specified revenue sources for each government level to ensure financial autonomy.

Federations can be 'coming together' (like the USA, Switzerland), where independent states pool sovereignty, or 'holding together' (like India, Belgium, Spain), where a large country divides power between central and state governments.

What Makes India A Federal Country?

India, though described as a 'Union of States,' operates on federal principles. Its Constitution provides for a three-tier system: Union Government (Central), State Governments, and Local Governments (added later). Legislative powers are divided among the Union List (subjects of national importance), State List (subjects of state/local importance), and Concurrent List (subjects where both can legislate, with Union law prevailing in conflict). The constitution's basic structure and power-sharing arrangements cannot be unilaterally changed by the Union Government, requiring ratification by states.

How Is Federalism Practised?

Federalism in India is shaped by democratic politics and shared ideals:

Linguistic States

The creation of states based on language, initially feared to cause disintegration, has actually strengthened national unity and improved administration by allowing states to manage affairs in their dominant language.

Language Policy

The Constitution recognizes Hindi as the official language but also includes 22 Scheduled Languages, allowing states their own official languages and enabling use of English alongside Hindi for official purposes, thus respecting linguistic diversity and avoiding imposition.

Centre-State Relations

Initially, the dominance of a single party at the Centre often led to the misuse of power against state governments controlled by rival parties. However, since the 1990s, the rise of regional parties and coalition governments at the Centre has fostered greater respect for state autonomy and power-sharing, supported by Supreme Court rulings preventing arbitrary dismissal of state governments.

Decentralisation In India

Recognizing the need for a third tier of government to manage local issues effectively and promote democratic participation, India introduced local self-government in villages (Panchayats) and towns/cities (Municipalities) through constitutional amendments in 1992. This decentralisation mandated regular elections, reserved seats for SCs/STs/OBCs and women, and required states to share powers and revenue with local bodies, significantly deepening democracy, though effective implementation and resource allocation remain challenges.