Indian Federal System – Present Status

What is Federalism?

It is a system of governance where government powers are distributed across multiple levels.

In India, there are 3 levels:
Central Government
State Government
Local Government

All three derive their authority from the Constitution.

Key Features of Indian Federalism

Basic Structure of the Constitution

Division of Powers:
Union List
State List
Concurrent List

Supreme Court – Protector of Federalism

73rd & 74th Amendments (1992) → Empowerment of Local Bodies

Major Issues (Current Issues)

1. Focus only on Centre-State relations
Federalism is misunderstood as Centre vs State
Neglect of Local Government

2. Weak Local Governance
Local government is not treated as a “real government”
Gram Sabha → Similar to Lok Sabha, but weak in practice
Lack of political interest in strengthening local bodies

3. Financial Issues
Post-GST → Decline in state revenues
Reduced funds reaching local bodies

Central Government:
Large collections through cess & surcharge
Limited sharing with states

4. Centralization of Power
More power concentrated with the Centre
Challenge to state autonomy

5. Weak Implementation of Laws
RTI – 2005
RTE – 2009
Forest Rights Act – 2006
These are not fully benefiting the people

6. Low Public Participation
Even with representative democracy,
people’s voice remains weak
Vote-bank politics is dominant

Key Concept

“Success of Federalism = Improvement in people's quality of life”

If rural people's lives do not improve, federalism is not fully functioning

Solutions

Strengthen local governance
Create awareness among people
Decentralize power to the grassroots level
Increase public participation

Summary (Key Points)

Federalism = Centre + State + Local Government
Local government is neglected in India
GST & financial issues → impact states and local bodies
Laws exist but implementation is weak
Solution → Strengthening local governance + public participation