Nature of Indian Federalism
The Constitution of India establishes a federal structure, dividing powers between the Centre and the states. However, it exhibits a strong centralizing tendency (described by K.C. Wheare as "quasi-federal"). The Centre-State relations are categorized into Legislative, Administrative, and Financial relations.
Legislative Relations (Articles 245-255)
The Constitution uses the Seventh Schedule to divide legislative powers into three lists:
- Union List (List I): Contains subjects of national importance (e.g., defense, foreign affairs, banking, atomic energy). Parliament has exclusive power to legislate.
- State List (List II): Contains subjects of local or regional importance (e.g., public order, police, public health, agriculture). State legislatures have normal exclusive power.
- Concurrent List (List III): Contains subjects where uniformity of legislation is desirable but not essential (e.g., criminal law, marriage, education). Both Parliament and state legislatures can make laws. If a conflict arises, the Central law prevails.
- Residuary Powers: Power to make laws with respect to any matter not enumerated in the three lists vests with the Parliament (Article 248).
Emergency Provisions (Part XVIII)
During an emergency, the federal structure converts into a unitary one without any formal amendment.
1. National Emergency (Art 352): On grounds of war, external aggression, or armed rebellion. State governments are not dismissed, but they come under the complete control of the Centre.
2. President's Rule (Art 356): Due to the failure of constitutional machinery in a state. The state executive is dismissed, and Parliament legislates for the state.
3. Financial Emergency (Art 360): Threat to financial stability. The Centre can direct states to observe canons of financial propriety and reduce salaries.
Administrative & Financial Relations
Administrative Relations: The executive power of the state must be exercised so as to ensure compliance with laws made by Parliament. The Centre can issue directions to the states on certain matters (e.g., construction and maintenance of means of communication of national importance).
Financial Relations: The Constitution provides a detailed scheme for the distribution of financial resources. Taxes levied and collected by the Union but assigned to states, taxes levied by the Centre but collected and kept by states, and grants-in-aid are key mechanisms to ensure states have adequate funding despite the Centre possessing the most lucrative tax bases.