FEDERALISM AND CENTRE-STATE RELATIONS

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This article is written by Burdith Ann Pereira of 3^rd semester of the University of Law College, Gauhati University, Guwahati, Assam, an intern under Legal Vidhiya

ABSTRACT

This article aims at throwing light on the system of division or sharing of powers between the union and state with regards to Federalism. This sharing of power between the Union Government and the State Governments is basic to the structure of the Constitution. Through this article we will have a better insight about how the state and union functions.

KEYWORDS: Federalism, Union, State, Power sharing, Central Government,

INTRODUCTION-FEDERALISM

The system of government in which the power is divided between a central authority and various constituent units of the country is known as Federalism. A federation, generally, is considered to have two levels of government. One level consists of the government that runs the entire country, it is responsible for common national interests. The other level consists of provinces or states that look after the day to day administering of their state. Both these levels of governments enjoy their independent power. Federations are also, considered to be unitary governments. Under a unitary form of government there is one level of government i.e., the union or the central government. The union has the right to pass orders to the provincial or local government. But, in a federal system, the state government enjoys their own power and is not answerable to the central government. Both these governments functions separately and are answerable to people on different grounds.

FEATURES OF FEDERALISM

Some features of Federalism are listed below:

In a federal form of government there are two or more tiers of government.
Each tier of government is allotted with their own set of jurisdictions in matters of legislation, taxation and administration but ultimately govern the same set of citizens.
The existence and authority of each tier of government is mentioned in the constitution and hence it can be said that it is constitutionally guaranteed.
The courts play a role of an umpire in solving disputes if conflicts arise between different levels of the government.
The constitution clearly mentions the sources of revenue for each level of the government to secure its financial autonomy.
The federal system stands firm with the dual objective to promote and safeguard the unity of the country and to accommodate regional diversity.

RELATIONS BETWEEN UNION AND STATE

The most essential feature of Federalism is the distribution of power. The basic principle of a federation lays in the distribution of power between union and state in matters of legislative, executive and financial authority. We will discuss about the mentioned matters below:

Legislative Relations

The constitution makes division of legislative powers with regards to territory and subject matters. Legislative relations between Union and State i.e., the Parliament and State Legislatures are listed under Article 245 to 255 of the Indian constitution. The Parliament has superseding powers as compared to state legislatures. Schedule VII deals with the with the Union List, State List and Concurrent List.

Administrative Relations

Articles 256 to 263 deals with administrative relations i.e., Central Government and various state governments. Though India is a federal government but it has unitary features and in Article 256 itself, it is stated that the state governments should ensure that they abide by the laws made by Parliament and that it does not perform any executive or administrative function in breach of the same.

Financial Relations

Financial Relations between the Centre and State is listed down under Articles 264 to 293 of Part XII of the Constitution. India is a federal government and it follows separation of powers with regards to taxation too. The state posses’ tax from the jurisdiction of the state list and the union posses the same from the union list. However, the concurrent list includes no taxes. The tax collected by both the centre and state is distributed between centre and state. For instance, CGST and SGST are received by Centre and state respectively and IGST is received by the Centre and redistributed between states. This is a precise example of cooperative federalism in the financial sphere.

Constitutional provisions relating to centre-state relations with regards to the Parliament

Some Constitutional provisions related to centre state relations with regards to the parliament are listed below:

In National Interest (Article 249): This article deals with National Interest. It states that by a resolution is passed by the Rajya Sabha which is supported by at least 2/3^rd of its members that the resolution is necessary in national interest then the Parliament should make laws with respect to any matter enumerated in the State List. The Parliament can pass laws for the whole country or any territory, in India after the resolution is passed. Such a resolution stays in force for 1 year and can be extended by subsequent resolution.
Under the Proclamation of National Emergency (Article 250): The Parliament can legislate on the subject matters that are mentioned in the State List when the Proclamation of National Emergency is in operation the laws made by the parliament shall cease to come into effect after the expiration of 6 months after the proclamation operate.
By Agreement between States (Article 252): The Parliament can also legislate on a state subject if the legislatures of two or more states resolve that it is lawful of Parliament to make laws with respect to any matter enumerated in the State List relating to those State. Thereafter, any act passed by the Parliament shall apply to such states and to any other state which passes such a resolution. The Parliament also reserves the right to amend or repeal any such act.
To implement Treaties (Article 253): Any treaty, international agreement with any other country or countries or any decision made at any international conference, association or other body can be implemented in India if laws are made by the Parliament for whole or part of any territory of India.
Under Proclamation of the Presidents Rule (Article 356): The Parliament can also be authorised by the President to exercise the powers on the State Legislature when there is a Proclamation of the Presidents rule in case of disruption of the constitutional machinery of the state. However, any such laws passed by the Parliament shall cease to operate six months after the Proclamation of the Presidents Rule.

CHALLENGES FACED BY INDIAN FEDERALISM

Indian Democracy faced some challenges with regards to federalism, some of which are listed below:

Regionalism: The rise of regional parties have posed a threat to the national integrity and unity of India. Some regional groups have demanded more autonomy and special status. We can see the instance of Bodoland in Assam and many others respectively.
Division of Power: The division of powers between the Centre and the states is not clear and balanced. The Centre has more powers and resources than the states and can interfere in their affairs through various means such as President’s rule, Governor’s role, central laws, etc. The states have limited autonomy and fiscal space to pursue their own development and welfare policies. For example, President’s rule was imposed in Arunachal Pradesh and Uttarakhand in 2016 on grounds of constitutional breakdown, but was later revoked by the Supreme Court.
Absence of Fiscal Federalism: The fiscal relations between the Centre and the states are not equitable and transparent. The Centre collects most of the taxes and distributes them to the states according to its discretion or criteria. The states depend on the Centre for grants-in-aid, loans and other transfers. The states have limited taxation powers and borrowing capacities. For example, many states have complained about the inadequate compensation for revenue losses due to GST implementation.
Unequal Representation of Units: The representation of states in the Parliament and other federal institutions is not proportional to their population, area or contribution. Some states are over-represented while others are under-represented. For example, Uttar Pradesh has 80 Lok Sabha seats while Sikkim has only one. This affects the voice and influence of different states in national decision-making and resource allocation.
Centralised Amendment Power: The power to amend the Constitution is vested in the Parliament with a special majority. The states have no role or say in the amendment process except in some matters affecting them. For example, the Centre’s decision to abrogate Article 370 and bifurcate Jammu and Kashmir into two union territories in 2019 was done without consulting the state government or other stakeholders. For example, the creation of Telangana from Andhra Pradesh in 2014 was opposed by the latter state and led to protests and violence.

NEED TO STRENGTHEN FEDERALISM

Preserving Diversity and Pluralism: Federalism is needed to protect and preserve the diversity and pluralism of India’s society, culture, language, religion, etc. in the face of increasing homogenization and assimilation pressures from the Centre or dominant groups.

Safeguarding Autonomy and Rights: Federalism is needed to safeguard and enhance the autonomy and rights of the states and other sub-national units in the face of increasing centralization and interference from the Centre or other external forces.

Improving Quality and Efficiency of Governance: Federalism is needed to improve and ensure the quality and efficiency of governance and service delivery at various levels by empowering and enabling the states and other sub-national units to formulate and implement their own policies and programmes according to their needs and capacities.

Promoting Balanced and Inclusive Development: Federalism is needed to promote and achieve the balanced and inclusive development and welfare of all regions and sections of India by ensuring equitable and transparent distribution of resources and opportunities among different levels or units of government.

Fostering Harmony and Cooperation: Federalism is needed to foster and sustain the harmony and cooperation among different levels or units of government by resolving disputes and conflicts through dialogue and consultation rather than confrontation and coercion.

CONCLUSION

Federalism in India can be said to be rooted and can be chalked out on the basis of centre-state relations. Both the union and state ought to maintain a cooperative relation with reach other for the well being of the citizens of India. The basis of Federalism is to promote unity amongst the people of India. However, India can be called a Quasi-Federal Government in nature. Though it is Federal but unitary in spirit.

References

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