- Context (TH): The government has promoted cooperative and competitive federalism via NITI Aayog.
- Withholding of GST compensation funds is seen as confrontational federalism by state govts.
Federalism and its Types
- Federalism is a system of government in which the power is shared between a central authority and various constituent units of the country.
| Type of Federalism |
Description |
| Holding Together Federation |
- Powers are shared among various constituent parts to accommodate a country’s diversity. The central authority often holds the upper hand.
- E.g. India, Spain, Belgium
|
- Article 1 of the Constitution refers to India as a “Union of States,” implying that no state can secede and that the federation is not formed by an agreement among states.
|
| Coming Together Federation |
- Separate states combine to create a more unified entity. States enjoy greater autonomy compared to a holding federation.
- E.g. United States, Australia, Switzerland
|
| Asymmetrical Federation |
- Components that make up a nation have uneven powers and relationships in the domains of politics, administration, and finance.
- Asymmetry can be seen from both a vertical (between the states and the centre) and a horizontal (among the states) perspective.
- Russia (Chechnya), Ethiopia (Tigray), Canada (Quebec), India (Jammu and Kashmir until 2019, and various clauses in Article 371, which accord special powers to India’s north-eastern states).
|
Evolution of Federalism in India
| Phase |
Characteristics |
| Inner-party Federalism (1950-68) |
- Disputes resolved in Congress party forums (“Congress System“)
- Consensus-based form of “inner-party federalism“
- The Union government dismissed Kerala’s state government in 1959.
- The Congress Party lost autonomy after the 1969 split.
|
| Multi-Party Federalism (1990s) |
- National parties unable to win a majority, coalitions with regional powers.
- Decline in Centre-state confrontations and arbitrary use of Article 356.
- SR Bommai case 1994, SC questioned the Centre’s arbitrary use of Article 356.
|
| Co-operative Federalism |
- Liberalisation gave state governments autonomy to attract investment.
- 73rd & 74th Constitutional Amendments empowered local self-government.
- Discussions between the Union and states made true federalism possible.
|
| Competitive Federalism |
- The federal govt. advocated cooperative federalism (GST and NITI Aayog).
- NITI Aayog supports states’ performance through open rankings & assistance.
|
| Confrontational Federalism |
- NDA’s rise in 2014 reintroduced “dominant party” federalism.
- Significant federal disputes between opposition-led states and the centre.
|
| Bargaining Federalism |
- State governments’ bargaining strength increased in the 1990s due to regionalisation and an open economy.
- Used to resolve interstate disagreements (e.g., territorial or water disputes)
|
For more details, visit – Asymmetric Federalism
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