Unit 2: Federalism

Federalism: Nature of Federalism

Federalism is a system of government in which power is divided between a central authority and various constituent units of the country. India is often described as a **'quasi-federal'** state or a **"federal system with a strong unitary bias"**.

Federal Features of the Indian Constitution

• Dual Polity: Government at two levels - the Union and the States.
• Written Constitution: The powers and functions of both governments are specified in the Constitution.
• Division of Powers: The Seventh Schedule of the Constitution divides subjects into three lists:
  • Union List: Subjects of national importance (defence, foreign affairs, currency). Only the Union Parliament can legislate.
  • State List: Subjects of local/regional importance (police, public health, agriculture). Only State Legislatures can legislate.
  • Concurrent List: Subjects of common interest (education, forests, marriage). Both can legislate, but in case of a conflict, the Union law prevails.
• Supremacy of the Constitution: The Constitution is the supreme law of the land.
• Rigid Constitution: The federal provisions of the Constitution cannot be amended easily.
• Independent Judiciary: The Supreme Court acts as the umpire in case of disputes between the Centre and the States.

Unitary (Non-Federal) Features of the Indian Constitution

• Strong Centre: The Union List contains more subjects, and the Centre has overriding authority in the Concurrent List.
• Single Constitution: Both the Centre and the States operate under a single constitutional framework.
• Flexibility of the Constitution: The bulk of the Constitution can be amended by the Parliament alone.
• Single Citizenship: All citizens of India have a single, uniform citizenship.
• Integrated Judiciary: A single hierarchy of courts with the Supreme Court at the top.
• Appointment of Governor: The Governor of a state is appointed by the President and acts as an agent of the Centre.
• Emergency Provisions: The Centre can assume control over the states during a national emergency (Art. 352), state emergency (Art. 356), or financial emergency (Art. 360).

Union-State Relations

The relations between the Union and the States can be studied under three heads:

Legislative Relations (Articles 245-255)

This pertains to the distribution of law-making powers.

• Territorial Jurisdiction: Parliament can make laws for the whole or any part of India. A state legislature can make laws for the whole or any part of the state.
• Distribution of Subjects: As discussed, the division is based on the Union, State, and Concurrent lists.
• Parliamentary Legislation in State Field: Under certain extraordinary circumstances, the Parliament can make laws on subjects in the State List, for example:
  • When Rajya Sabha passes a resolution (Art. 249).
  • During a National Emergency (Art. 352).
  • To implement international agreements (Art. 253).
  • During President's Rule (Art. 356).

Administrative Relations (Articles 256-263)

This deals with the executive powers of the Centre and States.

• The executive power of the state must be exercised in compliance with the laws made by the Parliament.
• The Centre can give directions to the states to ensure compliance.
• Provisions for Inter-State Council (Art. 263) to promote cooperation.

Financial Relations (Articles 268-293)

This covers the distribution of financial resources.

• **Taxing Powers:** The Constitution allocates taxing powers between the Centre and the States.
• **Distribution of Tax Revenues:** Taxes levied by the Centre are distributed between the Centre and the states based on the recommendations of the **Finance Commission (Article 280)**.
• **Grants-in-Aid:** The Centre provides grants to the states to help them meet their financial needs.

Sarkaria Commission and Punchhi Commission

Over the years, strains have appeared in Centre-State relations. Several commissions have been set up to review the existing arrangements.

Sarkaria Commission (1983)

Headed by Justice R.S. Sarkaria, this commission was tasked with examining Centre-State relations. It submitted its report in 1988 with 247 recommendations. It strongly favoured cooperative federalism and did not suggest major structural changes.

Key Recommendations:

• Use of **Article 356 (President's Rule)** should be a last resort, used only in cases of actual breakdown of constitutional machinery.
• The institution of **All-India Services** should be further strengthened.
• The **Governor** should be an eminent person from outside the state and should not be too active in politics.
• The residuary powers of taxation should continue to remain with the Parliament.
• A permanent **Inter-State Council** should be set up.

Punchhi Commission (2007)

Headed by former Chief Justice of India, Madan Mohan Punchhi, this commission was set up to look into the new issues of Centre-State relations keeping in view the changes in the polity and economy of India since the Sarkaria Commission.

Key Recommendations:

• On **Article 356**, it recommended an amendment to allow for localized emergency provisions in specific troubled areas of a state, instead of dismissing the entire state government.
• On the **appointment of Governors**, it suggested that the Governor should have a fixed tenure of five years and should be removable only through a resolution by the state legislature.
• Advocated for giving more powers to the states in making laws on the **Concurrent List**.
• Recommended a new treaty for all inter-state river water disputes.