Chapter 2 – Federalism – Notes - 2023-24

What is Federalism?

• Federalism is a way of running a country where the power to make rules and decisions is shared between two main groups: the central government and various constituent local governments.
• In a federal country, you've got two levels of government. One is the central government, which makes rules about things that are important for the whole nation, like safety and the economy. The other is the local government, which makes rules for everyday things and listens to what the people in that area want. So, each region can have its own special rules.
• These two groups have their own areas where they can make rules, so they don't argue too much, and the power is spread out between them.

Differences between Unitary and Federal Systems

Unitary System	Federal System
In a unitary system, the Central Government has sub-units that are under its authority.	In a federal system, there are two or more levels of government with their own separate powers.
The central government has the authority to instruct the provincial government to take certain actions.	The central government cannot tell the provincial government to take action.
The central government holds supreme authority, and the administrative divisions exercise only the powers delegated to them by the central government.	The provincial government doesn't have to report to the central government. They both have their own responsibility to the public.

Key Features of Federalism

Some important characteristics of federalism include:

• Multiple levels of government.
• These governments share authority over the same citizens but have their own roles in making laws, collecting taxes, and managing administration.
• The constitution outlines the specific areas of authority for each level of government to prevent them from interfering in each other's work.
• The central government cannot change essential parts of the constitution, especially those related to federalism, without the agreement of state governments.
• When there's a disagreement between the central and state authorities, the highest court has the power to interpret their roles as defined by the constitution.
• Both the central and state governments have designated sources of income to ensure financial independence for smooth operation.
• Federal systems aim to achieve two goals: preserving and enhancing national unity while accommodating regional differences.

Two Ways Federations Form

Two important ways countries become federations are:

• Coming Together Federation:
• In this type, smaller independent units come together to make a bigger unit while keeping their own identity. They do this to increase their security. In these cases, each unit has equal power and is strong regarding the federal government. Examples include the USA, Switzerland, and Australia.
• Holding Together Federation:
• In this type, a larger country decides to share its power with smaller units. The central government is usually more powerful than the smaller ones. Sometimes, the smaller units have different levels of power, with some having special rights.

Why India Is a Federal Country?

India is a good example of a holding together federation. Even though the word 'federation' doesn't appear in our constitution, Article 1 of the Indian Constitution describes India as a union of states. Here's how federalism works in India:

• Multiple Levels of Government: Originally, India had two levels of government, and later, in 1992, a third tier was added. So, India meets the requirement of having two or more levels of government.
• Division of Powers: The powers of the central and state governments are divided into three lists:
• Union List: This covers matters of national interest that need consistent laws across the country, like defense, foreign affairs, banking, and communication. Only the central government can make laws on these subjects.
• State List: These are matters of local and provincial importance, such as police, commerce, trade, and agriculture. State governments make laws based on their needs.
• Concurrent List: This includes matters of common interest to both the center and the states. Both can make laws on these topics, but if there's a conflict, the center's law prevails.
• Residuary Subjects: Anything not in these three lists or that comes up in the future is called the residuary subject. The central government has the power to make laws on these subjects.
• Unequal Division of Power: In India, power can be distributed unevenly among states. For instance, Jammu and Kashmir had special status with its own constitution, but that's been changed. Union territories aren't full-fledged states; they're directly controlled by the center. Some regions, like those in the North East and Himalayas, have special status for development.
• Constitutional Safeguards: The constitution protects this power-sharing. Any change affecting federalism needs a bill passed by a two-thirds majority in both houses of parliament and then approved by at least half of the states. Disputes are settled by higher courts, including high courts and the Supreme Court.

How Federalism Is Put into Practice

The success of federalism in India isn't just about what's written in the constitution; it's about embracing diversity and the willingness to live together. This has evolved over time through various events in the country.

• Linguistic States: After India gained independence in 1947, there was a demand to reorganize states based on language, especially in the southern parts.
• The central government was worried that creating states based on language might harm the country's unity. However, this didn't turn out to be the case.
• After prolonged protests, Andhra Pradesh was created for Telugu-speaking people. Later, states like Kerala and Karnataka were formed. This creation of linguistic states actually strengthened our unity and made governance easier.
• Language Policy: India is incredibly diverse when it comes to language, culture, religion, caste, and ethnicity. About 40% of the population speaks Hindi, while the rest speak various other languages.
• Our constitution makers decided not to declare any language as the official language of the country.
• The constitution suggests that the central government should use Hindi and English for official purposes, but state governments can use Hindi, English, or any other local language for their official work.
• Some critics thought this favored English elites, but it was done to ensure that non-Hindi speakers didn't feel left out. The government encourages Hindi but doesn't force it on anyone.
• The Indian government recognizes 21 languages in the eighth schedule of the constitution, and more can be added in the future through constitutional amendments. This is to protect the interests of non-Hindi speakers. Adding a language in the constitution allows candidates to take exams conducted by the central government in any of these 21 languages.
• Center-State Relations: Strengthening federalism can also involve rethinking how power is shared between the central and state governments. Although the constitution outlines power-sharing, it often depends on how political parties handle it.
• For a long time after independence, the same party ruled both at the center and in the states. This made state governments seem like smaller parts of the central government, and they didn't fully use their own powers.
• Starting in the 1990s, regional-level politics saw the rise of many regional political parties that won state elections. This led to demands for more power-sharing between the center and the states.
• However, this demand for power-sharing created conflicts between the central and state governments, as the central government was sometimes hesitant to share power and overruled state demands.
• The Supreme Court stepped in to resolve these conflicts and prevent central government domination.
• With the emergence of regional political parties, coalition governments became a trend because no single party could secure a majority in state assemblies or at the central level. This led to political parties recognizing the need for mutual respect, further strengthening federalism in India.

Decentralization in India

• India is a vast and diverse country with a majority of its people living in rural areas. Managing a country like this with two levels of government wasn't easy. Even though Mahatma Gandhi suggested building democracy based on village panchayats, it wasn't adopted initially. However, later on, the importance of village panchayats was recognized, and the first one was established in Rajasthan in 1952. This was followed by several other states doing the same. But not all states took this step, and the ones that did weren't regulated by law.
• To address this, the 73rd Constitutional Amendment in 1992 made it mandatory for all states to create village panchayats in each district and hold regular elections every five years.
• Decentralization means giving some powers of the central and state governments to local governments.
• The main idea behind decentralization was to solve local problems at the grassroots level. People have the best understanding of the issues and resources in their area, so they know how to solve problems and allocate resources in a way that meets their needs. It also allows even the most remote communities to participate directly in decision-making, as their choices have a direct impact on their lives.

Constitutional Rules for Effective Decentralization

• The constitution mandated regular elections for local government bodies.
• There are provisions to reserve seats for scheduled castes, scheduled tribes, and other backward castes in local body elections.
• At least one-third of the seats are set aside for women.
• Each state has its own independent body, the state election commission, responsible for conducting these elections.
• State governments must share power and revenue with local bodies.
• The third tier of government includes Panchayati Raj for rural areas and the Municipal Committee for urban areas.

Panchayati Raj System

The local government system in rural areas is known as the Panchayati Raj, and it consists of three levels.

• Gram Panchayat: This is the first level, established at the village or group of villages' level. It includes several ward members known as 'Panch' and a president known as the 'Sarpanch.' These representatives are directly chosen by the adult population of their respective wards and villages.
• The Gram Panchayat serves as the decision-making body for the village, operating under the guidance of the Gram Sabha. The Gram Sabha comprises all the eligible voters from the Gram Panchayat. It convenes two or three times a year to assess the Gram Panchayat's performance and approve its budget. This ensures that elected representatives are accountable to the voters.
• Panchayat Samiti/Mandal: The second level consists of a group of Gram Panchayats forming a Panchayat Samiti or Mandal at the block level. Members of the Panchayat Samiti are elected from the constituent Gram Panchayats, and it also includes a government officer known as the Block Development Officer (BDO).
• Zilla Parishad: The third level exists at the district level and is known as the Zilla Parishad. It comprises members elected from the constituent Panchayat Samitis or Block Samitis. Additionally, it includes members of the Lok Sabha and Members of the Legislative Assembly from that area. The Zilla Parishad is overseen by a government official known as the District Magistrate or Collector.

Municipalities

• In addition to rural local government, there's an urban local body responsible for urban areas. These are known as municipal committees for smaller towns and municipal corporations for larger cities.
• These bodies consist of elected members representing different wards and an elected leader. The leader is called the municipal chairman in the case of municipal committees and the mayor in the case of municipal corporations. There is also a government official known as the Municipal Executive Officer or Municipal Commissioner.
• This new form of local government represents one of the largest experiments in democracy and can serve as a model for any part of the world. 
• The constitutional recognition of local government has played a vital role in strengthening democracy in our country and has increased the participation of women, ensuring their voices are heard in a democratic system.

At the end of chapter Conclusion is-

• Federalism involves the sharing of power between the central and state governments, each with its own subjects on which they can make laws. This is done to maintain a balance of power.
• Key features of federalism include multiple levels of government, each with its list of subjects, and the Constitution safeguards their autonomy.
• Federalism can be categorized into two types: 'coming together' federation (e.g., USA) and 'holding together' federation (e.g., India).
• In India, matters on which the central and state governments can make laws are classified into three lists: central, state, and concurrent lists.
• Federalism is put into practice in India through the creation of linguistic states, language policies, and the restructuring of center-state relations.
• India also implements decentralization by transferring some powers from the central and state governments to local governments. This allows for the resolution of local issues and promotes public participation in democracy.