Federalism

Introduction

Federalism is a system of government in which power is divided between a central (national) authority and sub-national units (states/provinces). Neither level is subordinate to the other within its own sphere of authority. India's Constitution establishes a federal structure, though it leans more toward the Centre — leading scholars to describe it as "quasi-federal" or a "federation with a strong unitary bias."

Key Features of a Federal System

1. 1.Dual Government: Two levels of government — national and state.
2. 2.Written Constitution: Division of powers is specified in a written document.
3. 3.Division of Powers: Lists of subjects assigned to each level.
4. 4.Supremacy of the Constitution: The constitution is the supreme law.
5. 5.Independent Judiciary: An impartial arbiter of disputes between levels of government.
6. 6.Bicameral Legislature: An upper house to represent sub-national units.

Division of Powers in India

• The Seventh Schedule of the Constitution divides legislative subjects into three lists:
• Union List: 97 subjects on which only Parliament can legislate. Includes defence, foreign affairs, currency, banking, communication.
• State List: 66 subjects on which only State Legislatures can legislate. Includes police, public health, agriculture, land, local government.
• Concurrent List: 47 subjects on which both Parliament and State Legislatures can legislate. Includes education, marriage and divorce, forests, trade unions. In case of conflict, the central law prevails.
• Residual Powers: All matters not in any list belong to Parliament (unlike the US where residual powers go to states).

Centre-State Relations: Legislative

• Parliament can legislate on State List subjects under certain circumstances:
• Article 249: If the Rajya Sabha passes a resolution by 2/3 majority in the national interest.
• Article 250: During a National Emergency.
• Article 252: If two or more states request Parliament to legislate for them.
• Article 253: To implement international agreements and treaties.

Centre-State Relations: Administrative

• The Centre can give directions to states on certain matters (Article 256).
• States must exercise their executive power so as not to impede or prejudice Centre's executive power.
• The Centre can deploy its forces in any state.
• All-India Services (IAS, IPS, IFS) are controlled jointly by the Centre and States.

Centre-State Relations: Financial

• Taxes are divided between the Centre and States (Articles 268-293).
• The Finance Commission (Article 280) is constituted every 5 years to recommend the distribution of central taxes between the Centre and States.
• The GST Council (established under Article 279A by the 101st Amendment, 2016) decides on goods and services tax rates, a landmark cooperative federalism initiative.
• Grants-in-aid from the Centre to states help address fiscal disparities.

Governor: The Centre-State Link

• The Governor is appointed by the President (effectively, the central government).
• This gives the Centre considerable influence over state governments.
• The Governor:
• Is the constitutional head of the state.
• Acts as an agent of the Centre.
• Can reserve state bills for the President's consideration.
• Plays a role in government formation after elections.
• Invites the state to impose President's Rule (Article 356) recommendations.

President's Rule (Article 356)

• Also known as State Emergency or Direct Central Rule.
• Can be imposed when the Governor reports that the governance of the state cannot be carried on in accordance with the Constitution.
• The S. R. Bommai case (1994) is landmark: the Supreme Court held that the imposition of President's Rule is subject to judicial review and the question of whether a state government has the majority should be tested on the floor of the House.

Special Provisions for Certain States

• Article 370: Gave special status to Jammu and Kashmir (largely abrogated in August 2019; J&K was reorganised into two Union Territories).
• Article 371: Special provisions for several states including Maharashtra, Gujarat, Nagaland, Assam, Manipur, Andhra Pradesh, Sikkim, Mizoram, Arunachal Pradesh, and Goa.

Cooperative vs Competitive Federalism

• Cooperative Federalism: Centre and states work together on shared goals (e.g., GST Council, NITI Aayog).
• Competitive Federalism: States compete with each other for investment and resources (e.g., NITI Aayog rankings, ease-of-doing-business indices).