Who wants federalism?

Context:  The issue in federalism is not about Centre versus states but is co-produced by the political culture in both.

Factors that help in sustaining India’s Federalism:

• Accommodating linguistic Identities: The States Reorganisation Act allowed India to use federalism to accommodate linguistic diversity, as it could become a source of resistance to centralisation.
• Actual distribution of political power: Rise of coalition governments, economic liberalisation, regional parties, has provided a favourable ground for political federalism.
• Political and institutional culture: It includes the role of the supreme court in defending federalism and the role of Institutions like finance commission in creating create bi-partisan consensus
• Asymmetrical nature: Under which special exemptions are given to various states.

Problems associated with Federalism in India:

• Opportunistic nature of constitution: According to B R Ambedkar: “India’s Draft Constitution can be both unitary as well as federal according to the requirements of time and circumstances.”
  • Imperatives of security, state-building, and economic development are always allowed to trump federal pieties.
• Union government use the extreme interpretation of flexible federalism:
  • Citing procedural impropriety: to oust opponents.
  • Union often ignoring the will of the state legislature: E.g. Bifurcation of erstwhile Andhra was done against the resolution of the state legislature, Stripping statehood of Kashmir.
  • Curtailing the powers of States: Though Centre enables states to suspend labour laws if necessary, but is unwilling to do that in the case of agriculture.
• Pressures associated with asymmetrical federalism:
  • In cases of Kashmir and North East, asymmetrical federalism is seen as a source of security threat.
  • No clarity over compatibility with Article 14 (Equality before law) of the Indian Constitution.
• Increasing presidentialisation of national politics: a single-party dominance with powerful messaging power, and change in forms of communication, might diminish the stature of chief ministers.
• Constitutional amendments undermining federalism: Amendments to introduce Goods and Services act is seen as a step to increase centralisation in the system.
• Problems associated with states: Focussed more on political federalism rather than true financial and administrative federalism:
  • Most states are reluctant to honour more decentralisation within, to rural and urban bodies.
  • Failed to make a council of chief ministers a more robust forum.
  • They ask for a Central Minimum support price(MSP) guarantee and defend federalism.
  • Very few states have shown a zeal to increase their own financial headroom by utilising whatever powers they might have on taxation.