Union and States: Federalism, Devolution and Local Government

What the official syllabus says

HCS Main Written Examination, Paper IV: General Studies-II:

• Functions and responsibilities of the Union and the States, issues and challenges pertaining to the federal structure, devolution of powers and finances up to local levels and challenges therein.

Topics in detail

Nature of Indian federalism

• Federal features: dual polity, division of powers, written and rigid Constitution, independent judiciary, bicameral Parliament
• Unitary features: strong Centre, single Constitution, integrated judiciary, All India Services, emergency powers, appointment of Governors
• Debates: “quasi-federal”, “holding together” federation, co-operative and competitive federalism
• S. R. Bommai v. Union of India (1994): federalism as a basic feature; limits on Article 356

Legislative and administrative relations

• Seventh Schedule: Union, State and Concurrent Lists; residuary powers (Article 248)
• Parliament's power over State subjects: Articles 249, 250, 252 and 253
• Reservation of State Bills for the President (Article 201)
• Administrative relations (Articles 256–263): directions to States, delegation of functions, All India Services
• Role of the Governor and the use of Article 356 (President's Rule)
• Inter-State Council (Article 263) and the Zonal Councils (Haryana is in the Northern Zonal Council)
• Sarkaria Commission (1983–88) and Punchhi Commission (2007–10) on Centre–State relations

Financial relations and fiscal federalism

• Distribution of taxing powers; the divisible pool of taxes
• Finance Commission (Article 280): vertical and horizontal devolution, criteria used
• Grants-in-aid: statutory grants (Article 275) and discretionary grants (Article 282)
• Goods and Services Tax: Article 279A, the GST Council, compensation to States and its end
• Cesses and surcharges outside the divisible pool; centrally sponsored schemes and conditional transfers
• State borrowing (Article 293) and fiscal responsibility laws

Devolution to local levels

• 73rd Amendment: Part IX (Articles 243–243O), three-tier panchayats, Gram Sabha, reservation, five-year term
• 74th Amendment: Part IXA (Articles 243P–243ZG), municipalities, ward committees
• Eleventh Schedule (29 subjects) and Twelfth Schedule (18 subjects)
• State Finance Commissions (Articles 243I and 243Y) and State Election Commissions (Articles 243K and 243ZA)
• District Planning Committees (Article 243ZD) and Metropolitan Planning Committees (Article 243ZE)
• The “3 Fs”: funds, functions and functionaries; parallel bodies and the role of officials

Challenges therein

• Disputes over Governors, assent to Bills and the use of central agencies
• Vertical fiscal imbalance and States' dependence on transfers
• Inter-State disputes: river waters, boundaries
• Weak own-revenue base of local bodies; delayed elections and finance commissions
• Demands for new States and the role of regional parties

Overlaps

Government budgeting and GST are also in General Studies III. For Haryana's own local bodies, see Haryana: Panchayati Raj and Urban Local Bodies.