Q.Though the federal principle is dominant in our Constitution and that principle is one of its basic features, but it is equally true that federalism under the Indian Constitution leans in favour of a strong Centre, a feature that militates against the concept of strong federalism.

Body

Federal Principle in the Indian Constitution

• Division of Powers:

  • The Indian Constitution follows a federal structure by dividing powers between the Union and state governments through the Seventh Schedule, which includes the Union List, State List, and Concurrent List (Articles 245-263).
  • Example: Matters of national importance such as defense, foreign affairs, and atomic energy fall under the Union List, while matters of local governance like police, public health, and agriculture are under the State List.

• Supremacy of the Constitution:

  • Both the Union and state governments derive their powers from the Constitution, and neither is subordinate to the other in their respective spheres of authority, ensuring a federal framework.

• Basic Structure Doctrine:

  • The Supreme Court in the Kesavananda Bharati case (1973) held that federalism is part of the Constitution's basic structure, and thus, any attempt to destroy this feature would be unconstitutional.

Lean Towards a Strong Centre

• Residuary Powers:

  • Unlike many federal systems where residuary powers are vested in the states, in India, these powers rest with the Centre (Article 248). This gives the Union Government the authority to legislate on matters not enumerated in the State or Concurrent Lists.
  • Example: The Union’s jurisdiction over matters like information technology and cybersecurity, areas not originally foreseen in the Constitution, is an example of how residuary powers have been exercised.

• Concurrent List and Dominance of Centre:

  • The Concurrent List allows both the Union and state governments to legislate on subjects like criminal law, marriage, and bankruptcy. However, in case of conflict, the Union law prevails (Article 254), reinforcing central dominance.
  • Example: The Farm Laws (2020) were passed under the Concurrent List, despite agriculture being a state subject, highlighting the Centre's overriding authority.

• Emergency Provisions:

  • The President of India, acting on the advice of the Union Government, can declare an emergency under various circumstances:
    • National emergency (Article 352)
    • President’s rule (Article 356): The Centre can assume control of state governance if the state government cannot function according to constitutional provisions.
  • Example: President’s rule has been imposed multiple times, often for political reasons, curbing the autonomy of state governments. In S.R. Bommai vs Union of India (1994), the Supreme Court ruled against arbitrary imposition of President’s Rule, providing some checks on this power.

• Fiscal Centralization:

  • The Centre has a significant say in financial matters, as it controls the collection of key taxes like income tax and GST. Although the Finance Commission recommends the division of revenues, the Union Government’s power to impose and collect the majority of taxes creates a fiscal imbalance.
  • Example: Post the introduction of the Goods and Services Tax (GST) in 2017, states lost autonomy over a significant portion of their taxation powers, further consolidating central control over revenues.

• Article 356 and State Autonomy:

  • Article 356 gives the Centre the authority to impose President’s rule in states if there is a failure of constitutional machinery. This provision has often been criticized for being misused to dismiss state governments that were not politically aligned with the Centre.
  • Example: President’s Rule was imposed frequently during the 1970s and 1980s, sometimes for political reasons rather than genuine governance crises.

• Appointments to Key Institutions:

  • The Governor, appointed by the President, plays a key role in state affairs, including recommending President’s Rule. While the office of the Governor is meant to be apolitical, it has often been seen as an instrument for central control over states.
  • Example: The role of the Governor in states like West Bengal and Maharashtra has been criticized for political bias, with allegations that the office is used to exert undue influence over state governments.

Challenges to Strong Federalism

• Unequal Power Dynamics:

  • The Constitution’s tilt towards a strong Centre has led to grievances among states seeking greater autonomy, particularly in regional matters such as law enforcement, healthcare, and education.
  • Example: The National Education Policy (2020), while progressive, has been criticized by some states as it reduces their role in shaping educational policies, traditionally a state subject.

• Regional Aspirations:

  • The growing regional aspirations and demands for greater devolution of powers have been a constant point of friction. States like Tamil Nadu and West Bengal have often demanded more autonomy and a restructuring of Centre-State relations.
  • Example: The Sarkaria Commission (1983) and Punchhi Commission (2007) on Centre-State relations recommended greater decentralization, but many of their recommendations, such as giving states more control over the Concurrent List, have not been fully implemented.

• Tension in Fiscal Relations:

  • States often express discontent over the vertical fiscal imbalance, where the Centre collects more taxes but allocates only a portion to the states. The issue was further highlighted after the introduction of GST.
  • Example: Several states raised concerns in 2020 over delays in GST compensation payments, which further strained Centre-state relations.

Recent Developments and Emerging Trends

• Cooperative Federalism:

  • Despite central dominance, efforts towards cooperative federalism have been emphasized in recent years, especially with bodies like the NITI Aayog and the GST Council encouraging dialogue between the Centre and states.
  • Example: During the COVID-19 pandemic, the Centre and states had to collaborate on managing healthcare infrastructure, vaccine distribution, and lockdown measures, showcasing both the strengths and challenges of India’s federal system.

• Demands for More Autonomy:

  • In recent times, states like Punjab and West Bengal have called for greater financial and administrative autonomy. These demands have been driven by concerns over the concentration of power at the Centre and a perceived lack of consultation in decision-making processes.