Federalism is a system of governance where power is divided between a central authority and constituent units (e.g., states or provinces). Common in large democracies, federalism ensures both unity and regional diversity.
Key Features of Federalism
- At least two levels, governing the same citizens.
- They govern the same populace with their jurisdictions defined by the constitution for specific legislative areas like taxation and administration.
- The fundamental provisions of the constitution cannot be unilaterally changed by one level of government, they require the assent of both the center and the states.
- Changes to federal provisions require the consent of multiple levels of government.
- Courts resolve disputes between levels of government.
- Sources of revenue for each level are clearly specified.
Thus, the federal system thus has dual objectives:
1. To safeguard and promote unity of the country
2. Accommodate regional diversity.
Types of Federations
There are two types of federations based on the power dynamics between the central formation and its constituent units.
Coming Together Federations
- Independent states unite for mutual benefit (e.g., USA, Switzerland, Australia).
- Typically, there is equal power among states, and they have as strong as the federal government.
Holding Together Federations
- Power is divided within a single country to maintain unity (e.g., India, Belgium, Spain).
- Central authority holds more power, and constituent units may have unequal powers.
For example, Assam, Nagaland, Arunachal Pradesh and Mizoram (ANAM) enjoy special powers under certain provisions of the Constitution of India (Article 371) due to their peculiar social and historical circumstances.
Federalism in India
Key Constitutional Features
Two-tier System
Initially included Union and State governments. This was due to the rise of regional parties and coalition politics in the 1990s. Major national parites had to ally with state parties, and they bargained for more autonomy.
Three Lists of Subjects
- Union List: National subjects like defense, foreign affairs, currency.
- State List: State-specific subjects like police, agriculture.
- Concurrent List: Shared subjects like education and trade
Union law prevails in conflicts.
Special Provisions for Some States
- States like Nagaland and Mizoram have unique rights due to historical or cultural factors.
Union Territories:
- Governed directly by the central government.
Judiciary
- In case of any dispute about the division of powers, the High Courts and the Supreme Court make a decision.
Practices Strengthening Federalism in India
Linguistic States
- Central leaders thought having states based on language will divide the country.
- States reorganized based on languages after independence, promoting unity and efficient governance.
Language Policy
- Hindi is the one of the 22 scheduled language. Hindi speakers only make up 40% of the population.
- Flexible policy avoids imposition of any language on non-speakers.
Centre-State Relations
- Evolution from central dominance to mutual respect and coalition governance post-1990.
- Judiciary and coalition politics have further balanced power dynamics.
Decentralization
Rationale
- Better local governance through closer decision-making to people.
- Constitutionally mandated Panchayats (rural) and Municipalities (urban) introduced in 1992.
- People have better knowledge of problems in their localities.
- They have a better understanding of where to spend money and how to manage it efficiently.
Key Features
- Mandatory local elections.
- Reserved seats for marginalized groups and one-third reservation women.
- Independent State Election Commissions.
- Power and revenue sharing between state and local governments.
Global Inspiration: Participative Democracy in Brazil
Porto Alegre’s participative budget system empowers citizens to make decisions about municipal spending.
A similar model has been tried in parts of Kerala, India.
Challenges and Achievements
- Regular elections have deepened democracy but significant powers and resources are yet to be fully devolved to local governments.