Federalism is a governance structure where power is shared between a central authority and regional governments. It aims to balance independence and cooperation among different levels of government. In India, this system is complex, catering to a diverse population with varied needs.
Historical Context of Federalism in India
India’s federal structure has roots in its ancient and medieval history. The Mauryan and Gupta Empires exhibited central authority while allowing local autonomy. The British colonial period formalised federal principles through the Government of India Acts, particularly the 1935 Act, which proposed provincial autonomy.
Types of Federalism
There are several classifications of federalism:
- Dual Federalism: Central and state governments operate independently with distinct powers.
- Cooperative Federalism: Central and state governments work together towards common goals.
- Holding Together Federalism: A federation where states maintain autonomy while being part of a larger entity, as seen in India.
- New Federalism: Focuses on decentralising powers to enhance state governance.
Key Features of Indian Federalism
India’s federalism is characterized by:
- Binary Government: Central and state governments operate within a parliamentary democracy.
- Division of Powers: The Constitution delineates powers through the Union, State, and Concurrent Lists.
- Written Constitution: India has a comprehensive constitution that outlines the framework of governance.
- Bicameral Legislature: The Parliament consists of two houses, Lok Sabha and Rajya Sabha, representing the people and states respectively.
- Rigidity with Flexibility: The Constitution allows amendments while maintaining core principles.
Non-Federal Features of Constitution of India
India’s Constitution also exhibits non-federal characteristics:
- Central Dominance: The central government holds more power than the states.
- Single Constitution: There is one Constitution applicable to both the central and state governments.
- Judicial Independence: A unified judiciary resolves disputes between the central and state governments.
- Emergency Provisions: The central government can impose President’s Rule in states under certain conditions.
Federalism and the Constitution of India
The Constitution of India establishes the framework for federalism through Articles 245-263. It divides powers between the central and state governments, ensuring both operate within their jurisdictions. The Supreme Court plays important role in interpreting these powers.
Cooperative Federalism in India
Cooperative federalism has gained importance in recent years. It encourages collaboration between the central and state governments. NITI Aayog encourages this cooperation by involving states in national policy formulation.
The Goods and Services Tax (GST) and Federalism
The introduction of GST in 2017 aimed to create a unified tax system. However, it raised concerns about state autonomy in taxation. States previously had the power to levy various taxes, which were subsumed under GST, limiting their revenue-generating capabilities.
Implications of Fiscal Federalism
The GST regime has implications for fiscal federalism:
- Reduced State Autonomy: States lost independent taxing powers, impacting their finances.
- Centralised Control: The GST Council, dominated by the central government, influences tax decisions.
- Revenue Sharing Concerns: The expiration of GST compensation has created uncertainty for state finances.
Significance of Federalism in India
Federalism is crucial for India’s governance. It allows states to maintain unique identities while managing local affairs. This structure promotes targeted development and competitive federalism, encouraging states to innovate.
Challenges to Indian Federalism
India’s federal structure faces several challenges:
- Central-State Conflicts: Disputes often arise regarding the balance of power.
- Article 356 Misuse: The central government can impose President’s Rule, raising concerns about state autonomy.
- Fiscal Federalism Issues: States express concerns about revenue shortfalls due to GST.
Relevant Case Laws
Several landmark cases have influenced Indian federalism:
- State of Rajasthan vs. Union of India (1977): Established that the President’s satisfaction under Article 356 is subject to judicial review.
- S.R. Bommai vs. Union of India (1994): Emphasised the need for a floor test to determine majority in state assemblies.
- State of West Bengal vs. Union of India (1962): Clarified the central government’s legislative competence regarding national importance.
Judicial Role in Federalism
The judiciary plays a vital role in maintaining the federal balance. The Supreme Court adjudicates disputes and ensures both levels of government adhere to constitutional boundaries. Landmark cases have shaped the interpretation of federal powers.
Doctrine of Territorial Nexus
This doctrine addresses the jurisdictional powers of legislative bodies. It allows Parliament to make laws with extraterritorial application if a reasonable connection exists between the object of the act and the subject matter.
Doctrine of Pith and Substance
This doctrine resolves conflicts where laws appear to encroach upon another legislative body’s domain. It focuses on the true purpose of a law rather than its form, ensuring compliance with the constitutional division of powers.
