2. Federalism
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Chapter 2: Federalism – Study Notes
1. What is Federalism?
Federalism is a system of government in which power is divided between a central authority and various constituent units of the country.
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Federal System: Power is shared among different levels (e.g., Central Government and State Governments).
- Constitution of Belgium was amended in 1993, to give more powers to regional governments and reduce the power of central governments.
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Unitary System: Either there is only one level of government or the sub-units are subordinate to the central government. The central government can pass on orders to the provincial or local government.

2. Key Features of Federalism
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Two or More Levels: There are two or more levels (or tiers) of government.
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Distinct Jurisdictions: Different tiers govern the same citizens, but each tier has its own jurisdiction in specific matters of legislation, taxation, and administration.
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Constitutional Guarantee: The jurisdictions of the respective levels or tiers of government are specified in the constitution.
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Mutual Consent for Changes: The fundamental provisions of the constitution cannot be unilaterally changed by one level of government. Such changes require the consent of both the levels of government.
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Role of Courts: Courts have the power to interpret the constitution and the powers of different levels of government. The highest court acts as an umpire if disputes arise.
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Financial Autonomy: Sources of revenue for each level of government are clearly specified to ensure its financial autonomy.
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Dual Objectives: To safeguard and promote the unity of the country, while at the same time accommodating regional diversity.
3. Types of Federations
The exact balance of power between the central and the state governments varies depending on the historical context in which the federation was formed.
| Feature | Coming Together Federations | Holding Together Federations |
|---|---|---|
| Meaning | Independent states come together on their own to form a bigger unit so that by pooling sovereignty and retaining identity they can increase their security. | A large country decides to divide its power between the constituent States and the national government. |
| Power Balance | All constituent states usually have equal power and are strong vis-à-vis the federal government. | The central government tends to be more powerful vis-à-vis the States. |
| Examples | USA, Switzerland, and Australia. | India, Spain, and Belgium. |
4. What Makes India a Federal Country?
The Constitution of India originally provided a two-tier system of government (Union Government and State Governments). A third tier (Panchayats and Municipalities) was added later. The Constitution clearly provides a threefold distribution of legislative powers:
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Union List: Includes subjects of national importance (e.g., defense, foreign affairs, banking, communications, and currency). Only the Union Government can make laws on these subjects.
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State List: Contains subjects of state and local importance (e.g., police, trade, commerce, agriculture, and irrigation). Only the State Governments can make laws on these.
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Concurrent List: Includes subjects of common interest to both the Union and State governments (e.g., education, forest, trade unions, marriage, adoption, and succession). Both can make laws, but if their laws conflict, the Union law prevails.
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Residuary Subjects: Subjects that do not fall in any of the three lists (e.g., computer software). According to the constitution, the Union Government has the power to legislate on these "residuary" subjects.
5. How is Federalism Practiced in India?
The real success of federalism in India is attributed to the nature of democratic politics in our country.
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Linguistic States: The creation of states based on language was the first and a major test for democratic politics. It ensured that people who spoke the same language lived in the same state, making administration easier and the country more united.
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Special Status for states - Assam, Nagaland, Arunachal pradesh and Mizoram enjoys special powers under Article 371 of the Indian Constitution. These powers are related to protection of land, rights of Indigeneous people, culture and preferential employment in government services.
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Union Territory - Some regions are too small to become an independent states. Hence are governed by Central governments with or without legislatures, through a President appointed Lt. Governor or Administrator.
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Language Policy: India does not have a single "National Language."
- Hindi was identified as the official language as 40% of population mother tongue was Hindi, but to protect non-Hindi speakers, the Constitution recognizes 21 other languages as Scheduled Languages. The flexible approach by Indian leaders helped avoid the kind of situation witnessed in Sri Lanka.
- Article 343, the official language of India should be Hindi in the Devanagari script.
- As per the Eighth Schedule of the Indian Constitution, we have 22 languages.
- States have their own official languages.
- Constitution recommended to end the use of English as official language, by 1965. But due to protest from non Hindi speaking states, particularly Tamil Nadu, English continues till date.
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Centre-State Relations: Restructuring the Centre-State relations is one more way in which federalism has been strengthened in practice. After 1990, the rise of regional political parties in many states led to an era of Coalition Governments at the Centre. This created a new culture of power sharing and respect for the autonomy of State Governments.
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Can Central government change this setup? Parliament cannot change this arrangement. First a bill has to be passed by both houses of Parliament, with at least 2/3rd majority. Then it has to be ratified by legislatures of at least half of the states. In case of any disputes, High Courts and the Supreme Court can make a decision.
6. Decentralisation in India
When power is taken away from Central and State governments and given to local governments, it is called decentralisation. The basic idea is that a large number of problems and issues are best settled at the local level.
A major step towards decentralisation was taken in 1992 by amending the Constitution to make the third tier of democracy more powerful and effective:
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It is now constitutionally mandatory to hold regular elections to local government bodies.
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Seats are reserved for Scheduled Castes (SCs), Scheduled Tribes (STs), and Other Backward Classes (OBCs).
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At least one-third (33%) of all positions are reserved for women.
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An independent institution called the State Election Commission was created in each state to conduct panchayat and municipal elections.
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State governments are required to share some powers and revenue with local government bodies.
Structure of Local Government:
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Rural (Panchayati Raj): Village Panchayat (Gram Panchayat) Block/Mandal level (Panchayat Samiti) District level (Zila Parishad).
- Gram Sabha - all the voters in the village are its members, and has to meet at least twice or thrice in a year to approve annual budget of the panchayat and review the performance.
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Urban: Municipalities (for towns) and Municipal Corporations (for big cities), headed by Municipal Chairpersons and Mayors, respectively.