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Federalism & Devolution

GS-II: Constitution, Governance, Social Justice & IR

Useful for: UPSC Civil Services

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Overview

Indian federalism is a "holding-together" federation with a strong Centre; fiscal and administrative devolution decide how well it works in practice.

Key points

  • Article 1 calls India a "Union of States"; states cannot secede.
  • The 15th Finance Commission recommended 41% of the divisible pool for states (2021–26).
  • GST pooled taxing powers through the GST Council, a forum of cooperative federalism.
  • Centrally sponsored schemes give the Centre influence over state priorities.
  • Article 356 was frequently misused before S. R. Bommai (1994) restricted it.
  • Devolution of funds, functions and functionaries to local bodies remains uneven.

Practice MCQs

  1. From the perspective of definition and scope, which one of the following statements about Federalism & Devolution is correct?

    1. Federalism & Devolution has no exceptions or limitations in exam analysis.
    2. Indian federalism combines constitutionally divided powers with mechanisms for coordination and a comparatively strong Union.
    3. Holding local elections by itself guarantees effective decentralisation.
    4. Federalism & Devolution is unrelated to institutions, processes or real-world applications.

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    Answer: (b) Indian federalism combines constitutionally divided powers with mechanisms for coordination and a comparatively strong Union.. Indian federalism combines constitutionally divided powers with mechanisms for coordination and a comparatively strong Union.

  2. Consider the following statements on Federalism & Devolution, focusing on definition and scope: 1. Holding local elections by itself guarantees effective decentralisation. 2. Indian federalism combines constitutionally divided powers with mechanisms for coordination and a comparatively strong Union. Which of the statements given above is/are correct?

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2

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    Answer: (b) 2 only. Statement 2 is correct; Statement 1 is a common misconception.

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