Concept of Federalism
Definition
Federalism: System of government where power is distributed between:
- Central Government (Union)
- State Governments
- Local Bodies (through 73rd/74th Amendments)
India's Unique Federalism:
- Called "Quasi-Federal" or "Cooperative Federalism"
- Union stronger than states (unlike USA)
- But states have autonomy in areas
- Center-state power sharing
Division of Powers (Schedule 7)
Three Lists Structure
Union List (Articles 245, 248):
- Exclusive to Parliament (98 subjects)
- Examples: Defense, foreign relations, currency, atomic energy, railways, post, telecommunications, income tax
- States cannot legislate
- Parliament's exclusive domain
State List (Articles 245, 246):
- Exclusive to State Legislatures (59 subjects)
- Examples: Police, education, health, agriculture, land, local government, public works
- Parliament usually cannot legislate
- State's exclusive domain
Concurrent List (Articles 245, 246):
- Both can legislate (52 subjects)
- Examples: Marriage and divorce, labor, social security, environment, education (partially), criminal law (partially)
- Parliamentary law prevails if conflict (federal supremacy)
- Both have power but center has last word
Residual Powers (Article 248):
- Matters not in any list
- Go to Parliament
- Parliament can legislate on new subjects
- Advantage: center (as it gets residual power)
Distribution Logic
Why Union List:
- National security, foreign policy, currency need central control
- Cannot be divided; uniform needed
Why State List:
- Local issues best handled by states
- Police, education, agriculture differ by region
- States understand local conditions
Why Concurrent:
- Issues need both national framework and state implementation
- Marriage law, labor law: need uniformity but state flexibility
- Environment: national standards, state action
Center-State Relations in Practice
Cooperative Federalism
Principle:
- Center and states work together
- Consultation, coordination, compromise
- Not confrontational
- Shared responsibility
Mechanisms:
-
Intergovernmental Council (Article 263)
- PM, CMs, Union ministers meet
- Coordinate policies
- Resolve disputes
- Advisory body
-
Finance Commission (Article 280)
- Every 5 years
- Recommends revenue sharing (Union to states)
- Distributes taxes
- Equalizes financial capacity
- Important for center-state harmony
-
Planning Commission (now NITI Aayog)
- Coordinates development
- State participation in planning
- Balances national and regional needs
Conflicts and Disputes
Common Disputes:
- Financial allocation disputes
- Legislative jurisdiction disputes (concurrent list)
- River water sharing disputes
- Border issues
- Implementation of union laws by states
Resolution Mechanisms:
- Negotiation and Compromise: Official discussions
- Intergovernmental Council: Article 263 body
- Supreme Court: Constitutional disputes (Article 131)
- Parliament: Legislation to resolve conflicts
Issues in Federal Relations
Center Dominance:
- Union controls major revenue sources (income tax, customs)
- States dependent on grants and revenue sharing
- Center can impose conditions on grants
- Emergency powers (Article 356) give center vast power
Imbalance:
- States have limited financial autonomy
- Cannot generate sufficient revenue
- Dependent on center's goodwill
- Weakens federal principle
State Resistance:
- States resist central overreach
- Regional parties assert state interests
- Demand for more financial devolution
- Demand for concurrent list items to become state matters
President's Rule (Article 356)
When Applied
Conditions (Article 356):
- State's constitutional machinery has failed
- Governor can recommend
- President issues proclamation
- Triggers President's Rule
Constitutional Breakdown:
- Election results deadlock (no stable government)
- Government loses confidence motion
- Communal violence preventing governance
- Law and order breakdown