Understanding Federalism

• Federalism refers to the vertical division of power among different levels of government, a key form of power-sharing in modern democracies.
• The goal is to understand the theory and practice of federalism in India, including constitutional provisions and policies strengthening it.
• The chapter also explores local government as a new, third tier of Indian federalism.

What is Federalism?

• Belgium reduced the Central Government's power by giving powers to regional governments.
• Regional governments previously existed but could be withdrawn by the Central Government.
• In 1993, regional governments gained constitutional powers independent of the central authority changing Belgium from a unitary to a federal form of government.
• Sri Lanka remains a unitary system where the national government holds all powers.
• Tamil leaders are looking for Sri Lanka to adopt a federal system.
• Federalism divides power between a central authority and the country's constituent units.
• Federations typically have two government levels: one for the entire country and the other at province or state level.
• Both levels operate independently.

Key Features of Federalism

• Federalism has two or more government levels or tiers.
• Different government tiers govern the same citizens, each having its own jurisdiction in legislation, taxation, and administration.
• Each tier's jurisdiction is constitutionally specified and guaranteed.
• Fundamental constitutional provisions cannot be unilaterally changed; changes require consent from all government levels.
• Courts can interpret the constitution and government levels' powers.
• The highest court acts as an umpire in disputes between government levels.
• Revenue sources for each government level must be specified to ensure financial autonomy.
• A federal system aims to safeguard national unity while accommodating regional diversity.
• Institutions and federalism practices require governments to agree on power-sharing rules and trust each other to abide by the agreement.
• An ideal system has mutual trust and agreement.
• Power balance varies, depending on historical context.
• One route involves independent states uniting to increase security, pooling sovereignty, and retaining identity, such as the USA, Switzerland, and Australia.
• Constituent states typically have equal power and are strong relative to the federal government in these "coming together" federations.
• Another route involves a large country dividing power between constituent states and the national government.
• India, Spain, and Belgium exemplify the "holding together" federations.
• The Central Government is more powerful.
• Unequal powers may exist.
• Some subunits get special powers.

What Makes India a Federal Country?

• India is described as a "Union of States".
• Despite lacking the "federation" label, the Indian Union embraces federalism's principles.
• A two-tier government system originally existed and now includes the State governments and the Union Government (Central Government).
• Panchayats and municipalities serve as a third tier.
• A three-fold distribution of legislative powers exists with three lists:
  • The Union List deals with national importance subjects like communications, banking, foreign affairs, and defense.
  • The State List deals with subjects of state and local importance like police, trade, agriculture, and irrigation.
  • The Concurrent List addresses subjects of interests to both the Union and State Governments, like education, marriage, forests, trade unions, adoption, and succession.
• The Union Government legislates on 'residuary' subjects not in the three lists.
• Not all states have identical powers.
• Some such as Mizoram, Arunachal Pradesh, Nagaland, and Assam, possess special status under the Constitution's Article 371.
• These powers safeguard land rights, culture, and preferential government employment.
• Special provisions prevent non-residents from buying land or houses.
• Union Territories like Chandigarh, and Delhi lack state powers and are controlled by the Central Government.
• Constitutional structure makes power-sharing changes complex.
• Changes require a two-thirds majority in both Parliament houses and ratification by at least half the total state legislatures.
• The judiciary oversees constitutional provisions and handles power disputes through High Courts and the Supreme Court.
• The Union and State governments can levy taxes for revenues.

How is Federalism Practised?

• Federalism's success depends on democratic politics, not just constitutional provisions.
• The creation of linguistic states marked a key test.
• Originally, national leaders feared disintegration but experience has proven it united the country and eased administration.
• The Constitution designated Hindi as the official language, not the national language.
• Safeguards protect other languages.
• There are 22 languages recognized by the Constitution as Scheduled Languages.
• Candidates for Central Government may take exams in any of these languages.
• States can have their own official languages.
• India adopted a careful approach to Hindi, unlike Sri Lanka.
• The Central Government agreed to continue English usage with Hindi, averting conflict.
• Power-sharing arrangements rely on how leaders act in reality.
• The Centre and states were ruled by the same party for a long time.
• State Governments couldn't exert rights as federal units/
• The Central Government dismissed State Governments controlled by rival parties, undermining federalism's spirit.
• The rise of Coalition Governments after 1990 saw regional political parties came to power, requiring major national parties to form alliances.
• The Supreme Court supported State Governments.
• Its judgement preventing arbitrary dismissals was vital.
• Federal power sharing became more effective.

Decentralisation in India

• Federal governments possess two or more tiers.
• Some Indian states are similar to European countries in size and need power sharing within.
• India required another government tier below the states for decentralization, the third-tier aka local government.
• Decentralisation shifts power from Central and State Governments to local self-government.
• Decentralisation makes problems solved best at the local level.
• People know their localities' problems and how to manage money.
• Local input increase democratic participation.
• Local self-government realizes one principle of democracy.
• The need was recognized in the Constitution and has been attempted several times.
• Panchayats and municipalities were set in all states but under state's control.
• The elections were not regular and local had no power and resources.
• A major step was conducted in 1992.
• The Constitution was amended to empower the third tier of democracy.
• Regular elections occur and are constitutionally mandatory to local government bodies.
• Seats are reserved for other backwards classes, scheduled tribes, and scheduled castes.
• At least one-third of positions are reserved for women.
• An independent State Election Commission created in each State conducts Municipal and Panchayat elections.
• The state has to provide revenue and powers to local government bodies.
• Sharing differs.
• Villages are called panchayati raj.
• A group of villages has a gram panchayat consisting of ward members/panch, and a president/sarpanch.
• They are elected by the village's adult population.
• It is a decision-making body by the overall supervision.
• All village voters are its members that has to meet twice to review budget.
• A few gram panchayats form a panchayat samiti, block or mandal
• Members are elected by the panchayat in the area.
• All samitis form a zilla, or a district parishad together.
• Members are elected.
• Members of the Sabha and others are also members.
• The chairperson is the head.
• Local government bodies exist for urban areas as well.
• Town have municipalties and big cities aare municipal corporations that are controlled.
• The mayor is called the chairperson.