Indian Federal Structure: Central Orientation

India’s federal structure is often described as having a “tilt” towards the central government, meaning that while India is a union of states, the central government holds more power than the states in several key areas.

1. Constitutional Provisions

• Single Constitution: India has one unified Constitution for both the Union and the states, unlike countries with separate state constitutions.
• Division of Powers: The Constitution divides powers into three lists: Union List, State List, and Concurrent List. However, the Union List, which includes critical areas like defense, foreign affairs, and finance, gives the central government greater authority.

2. Financial Control

• Revenue Distribution: The central government collects most major taxes (like GST and income tax) and then distributes funds to states, creating financial dependence.
• Finance Commission: Every five years, the Finance Commission allocates state funds, but this allocation still depends on central discretion.

3. Emergency Provisions

• President’s Rule: The central government can impose President’s Rule in a state, taking over its administration if there’s a perceived breakdown in constitutional governance.
• Emergency Powers: During national emergencies, the central government can override state autonomy, giving it vast powers over state affairs.

4. Concurrent List Advantage

• In matters under the Concurrent List (like education and criminal law), both states and the center can legislate, but in cases of conflict, central laws prevail, further centralizing authority.

Example: GST Implementation

The implementation of the Goods and Services Tax (GST) serves as an example of central dominance. Although states have representation in the GST Council, the center plays a crucial role in decision-making, affecting states’ fiscal independence.