Overview: Federal System | Indian Polity for UPSC CSE PDF Download

Introduction

In a federal system, each level of government has its own responsibilities. The national government usually handles things like national defense and communication systems. Meanwhile, state governments take care of more everyday stuff like schools and roads in their areas. This system lets local governments handle things that affect their areas best. 

A federal system serves a dual purpose:

• Safeguarding and promoting the unity and integrity of the country,
• Facilitates the accommodation of regional diversities.

How is the Federal system different from the Unitary system?

• In a Unitary type system, all authorities are vested in the Union government, and states either do not exist or derive their power from the Centre itself.
• In a federal system, the Constitution divides power between the Centre and the lower units.
• Countries like Britain, Japan, France, Italy, Spain, etc., have unitary types of government, while the USA, Canada, Russia, Australia, have a federal model of government.
  
  

General Characteristics of the Federal system

• Multiple Tiers of Government: In the federal system, the same citizens are governed by multiple tiers of government, i.e. at the national, province, and local levels (municipalities).
• Multiple Jurisdictions: Each level of government has its own specific areas where it has power. This includes making laws, collecting taxes, and managing administration.
• Written Constitution: There's a written agreement, called a constitution, that lays out the rules for how the country is run. It clearly says what each level of government can and can't do.
• No Unilateral Change in the Federal Scheme: The federal provisions of the Constitution cannot be amended unilaterally. It requires the consent of the constituent states.
• Independent Judiciary as Arbiter:  There's a separate branch of government called the judiciary that decides if the rules are being followed correctly. It decides the disputes between the Centre and states as well as between different states.
• Financial Autonomy: Each level of government has its own ways to make money, like taxes. This helps keep them financially independent so they can manage their own affairs without relying too much on others.

Types of Federal Systems

Coming Together Federations:

• This happens when independent states decide to join together to form a bigger country. They do this to increase their security and strength.
• In this type, each state that joins has equal power compared to the central government. 
• Examples include the United States, where individual states came together to create the nation, and also countries like Switzerland and Australia.

Holding Together Federations:

• In this setup, a country decides to share some of its power with smaller regions or provinces within it.
• Unlike the first type, the central government usually has more power in this arrangement, and the states or provinces might have different levels of authority.
• For example, in India, the central government has more power overall, and certain states have special rights or powers to protect their unique interests, like the North-Eastern states.
• Other examples of holding together federations include Canada, Belgium, and Spain.
  
  

Federalism in the Indian Constitution

The Constitution of India provides for a federal structure. The circumstances responsible for adopting a federal system of government were the following:

• The vast size of the country - Governing such a large country centrally would be very challenging.
• Socio-cultural diversity -  India is incredibly diverse, with many languages, religions, and traditions. Different regions have their own unique identities and needs.
• Accommodation of Princely states - Before independence, India was made up of many princely states with their own rulers. After independence, integrating these states into a single nation required a flexible system of government.

Historical Background

1. Initially, the Government of India under British rule was unitary in nature. However, after the First World War, the government realised that a fully unitary system of governance was not suitable for the Indian administrative system.
2. ‘Diarchy’ introduced in the Government of India Act, 1919, is considered the first step towards federalism.
3. The Government of India Act 1935 provided explicitly for ‘provincial autonomy’.

Nature of Indian Federalism

The Indian Constitution makers didn't stick to a strict federal model. Instead, they tweaked it to fit India's unique circumstances. They mixed in some unitary features, where power is more centralized, alongside federal elements.
The Indian Constitution doesn't use the word "federation." Instead, it talks about the "union of states." This means two important things:

• The states didn't come together through a formal agreement.
• The states have no right to secede from the Union.

The Indian federal system is based on the Canadian Federation. 

Federal Features of the Indian Constitution

Let's break down the federal features of the Indian Constitution:

1. Written Constitution: Everything about how India is governed is written down in a rulebook called the Constitution. It helps avoid confusion and disagreements between them.
2. Rigidity in the Constitutional Amendment process: The process to change the constitution is very rigid. Those amendments that seek to alter the federal scheme need to be passed by a special majority and must be ratified by half of the state legislature. 
3. Division of Power: The Constitution in schedule  7, provides 3 lists that divide up what areas the central government and state governments can make laws about:
   • Union List: Only the central government can make laws on these subjects.
   • State List: Only state governments can make laws on these subjects.
   • Concurrent List: Both the Union and the state can make laws, but in case of conflict, the central law will prevail.  The residuary subjects (subjects that do not feature in these lists) are dealt with by the Union government.
4. Independent Judiciary: There's a separate branch of government called the judiciary, which includes the Supreme Court and High Courts. They make sure everyone follows the rules in the Constitution. The Constitution grants the Supreme Court and High Courts the power of judicial review, enabling them to invalidate laws and regulations created by the executive and legislature if they are found to be unconstitutional.
5. Bicameralism:  India has two houses in its Parliament:
   
   • The lower house, called the Lok Sabha, has members who are directly elected by the people.
   • The upper house, called the Rajya Sabha (Council of States), represents the states.

Unitary Features in Indian Constitution

1.  Constitution of India describes India as a “Union of states“ avoiding the term “federal.
2. There is a single constitution and no separate Constitution for states. 
3.  Constitution only provides for National citizenship. States do not offer their separate citizenship. This differs from countries with federal structures like the USA, Australia, and Switzerland, which provide dual citizenship to their citizens.
4. It  gives more power to the Parliament, which can make decisions that affect the states without needing their full agreement.
   • Parliament, through Article 3 of the Constitution, has the authority to create new states, change state boundaries, merge states, or rename states.
   • Article 253: This allows Parliament to create laws that apply to the entire country or just specific parts to fulfill international agreements or treaties.
   •  Article 249: The Rajya Sabha can transfer any state subject to Parliament.
5. Supremacy of the central government
   
   • The President, who represents the central government, chooses the governors for each state. Governors act on behalf of the central government in the states. State governments don't have much say in their appointment or removal.
   • High Court judges, who have authority over legal matters in states, are appointed by the President.
   • The provision of All India Services, like the Indian Administrative Service (IAS) or Indian Police Service (IPS), gives more power to the central government. State governments have limited control over these services, and the central government can create new ones with a two-thirds majority vote in the Rajya Sabha.
6. President’s veto over state legislation: The Governor can reserve certain types of bills for the consideration of the President. The President has an absolute veto over state legislation. The President can withhold assent not only in the first instance but also in the second stance.
   
7. Emergency Provisions: The Indian Constitution, under Articles 352, 356, and 360, includes provisions for emergency powers in case of threats to national sovereignty, breakdown of the "constitutional machinery" in a state, or financial instability and bankruptcy in any government.
8. Integrated Election Machinery: Both general elections (Central) and elections of state legislative assemblies are conducted by the Election Commission of India. The states have no say in either appointment or removal. 
9. Integrated State Machinery: The Comptroller and Auditor General of India is responsible for the accounting and auditing of both centres as well as state finances. However, states do not have any say in the appointment and removal of the CAG. Other Central agencies that have jurisdiction in the state are the Central Bureau of Investigation, the National Investigative Agency.

To sum it up, the Indian federal system leans  towards centralization, giving the central government greater authority over states in some matters. This balance of power was intentionally designed to ensure unity, stability, and efficiency in governance. Therefore, despite being labeled as a federal system, India's Constitution allows for both federal and unitary characteristics, depending on the circumstances.