Prelims: Indian polity and economy, including Bihar · Unit 20 of 38

Federalism, State Government and Local Bodies

Centre-state relations, Governor, state legislature, special provisions, Fifth and Sixth Schedules, PESA, and the 73rd and 74th Amendments.

Syllabus lines this unit covers
  • Functions and responsibilities of the Union and the States, issues and challenges of the federal structure
  • Devolution of powers and finances up to local levels and challenges therein
  • Panchayati Raj and municipalities
  • Special provisions for Scheduled Areas and Tribal Areas

Nature of Indian federalism

  • India is a "Union of States" (Article 1). States cannot secede, and Parliament can change their boundaries and names by a simple law (Articles 2–4).
  • Federal features: two governments, written Constitution, division of powers, rigid amendment for federal provisions, independent judiciary, bicameral Parliament.
  • Unitary features: strong Centre, single Constitution, single citizenship, integrated judiciary, All India Services, emergency provisions, appointed Governor, Rajya Sabha not equal for all states.
  • K. C. Wheare called India "quasi-federal". In S. R. Bommai (1994) the Supreme Court held that federalism is part of the basic structure.

Legislative relations (Articles 245–255, Seventh Schedule)

List Number of entries (originally) Examples
Union List 97 (now 98 entries with some deleted) Defence, foreign affairs, banking, railways, atomic energy
State List 66 (now 59) Police, public order, public health, agriculture, land
Concurrent List 47 (now 52) Criminal law, marriage, education, forests, electricity
  • Residuary power: Parliament (Article 248).
  • If a central and a state law on a Concurrent subject conflict, central law prevails (Article 254). A state law reserved for the President and assented to can prevail in that state.
  • Parliament can make law on State subjects:
    • in the national interest, by a Rajya Sabha resolution under Article 249;
    • during a national emergency (Article 250);
    • when two or more states request it (Article 252);
    • to implement treaties (Article 253);
    • during President's Rule.

Administrative and financial relations

  • Administrative relations: states must comply with Union laws (Article 256); the Centre can give directions (Article 257); All India Services (Article 312); inter-state river disputes (Article 262); Inter-State Council (Article 263).
  • Finance Commission (Article 280): set up every five years. It recommends how central taxes are shared between the Centre and states (vertical devolution) and among states (horizontal devolution).
    • The 15th FC (N. K. Singh) set the states' share at 41% for 2021–26.
    • The 16th FC (Arvind Panagariya) covers 2026–31.
  • GST (101st Amendment, 2016): Article 246A gives concurrent taxing power. The GST Council (Article 279A) is chaired by the Union Finance Minister. The Centre has one-third of the voting weight and states two-thirds. A decision needs three-fourths of the weighted votes.
  • Grants-in-aid: statutory grants (Article 275) and discretionary grants (Article 282).

Commissions on Centre-state relations

  • Administrative Reforms Commission (1966).
  • Rajamannar Committee (1969), set up by Tamil Nadu.
  • Anandpur Sahib Resolution (1973).
  • Sarkaria Commission (1983–88). It recommended:
    • consulting the Chief Minister before appointing a Governor;
    • the Governor should be a detached person from outside the state;
    • Article 356 only as a last resort;
    • a permanent Inter-State Council.
  • Punchhi Commission (2007–10). It recommended:
    • a fixed 5-year term for Governors;
    • removal of a Governor only through a resolution of the state legislature;
    • "localised emergency" provisions.

State government

  • Governor (Articles 153–162):
    • appointed by the President and holds office during the President's pleasure;
    • minimum age 35;
    • acts on ministerial advice except in discretionary matters, such as reserving a bill for the President (Article 200), recommending President's Rule (Article 356), and Sixth Schedule matters;
    • Nabam Rebia (2016): discretion is narrow.
    • State of Tamil Nadu v. Governor (April 2025): a two-judge bench set time limits for assent to state bills. On a Presidential reference under Article 143, a Constitution Bench opined in November 2025 that courts cannot fix such timelines, though a Governor cannot sit on a bill indefinitely. Check current affairs for later developments.
  • Chief Minister and Council of Ministers: responsible to the Legislative Assembly. The 15% cap applies, with a minimum of 12 ministers.
  • Legislature:
    • Legislative Assembly: 60 to 500 members (exceptions are Sikkim, Goa, Mizoram and Puducherry).
    • Legislative Council (Article 169): created or abolished by Parliament on the request of the assembly by special majority.
    • Six states have councils: Andhra Pradesh, Telangana, Uttar Pradesh, Bihar, Maharashtra and Karnataka. Bihar has one; Jharkhand does not.

Special provisions and Scheduled Areas

  • Article 371 gives special provisions for Maharashtra and Gujarat. Articles 371A to 371J cover Nagaland, Assam, Manipur, Andhra Pradesh/Telangana, Sikkim, Mizoram, Arunachal Pradesh, Goa and Karnataka.
  • Article 370 (Jammu and Kashmir) was made inoperative on 5 August 2019. The Supreme Court upheld this in December 2023.
  • Fifth Schedule: Scheduled Areas in states other than the north-eastern four, such as Jharkhand, Odisha, Chhattisgarh and Madhya Pradesh.
    • The President declares Scheduled Areas.
    • The Governor reports on them and can modify laws for them.
    • There is a Tribes Advisory Council of up to 20 members, three-fourths of whom are ST MLAs.
  • Sixth Schedule: autonomous district councils in Assam, Meghalaya, Tripura and Mizoram. Each council has up to 30 members and law-making powers on land, forests and customs.

Local self-government

73rd Amendment, 1992: Panchayats (Part IX, Articles 243–243O, Eleventh Schedule)

  • Came into force on 24 April 1993 (National Panchayati Raj Day).
  • Three tiers: village, intermediate (block) and district. States with population under 20 lakh may skip the intermediate tier.
  • Gram Sabha: all registered voters of the village.
  • Direct election of members; minimum age 21; five-year term. Elections must be held within six months of dissolution.
  • Reservation:
    • SCs and STs in proportion to population;
    • at least one-third for women, including chairpersons; many states, including Bihar (2006, first) and Jharkhand, give 50%;
    • OBCs at the state's option.
  • State Election Commission (Article 243K) and State Finance Commission every five years (Article 243I).
  • 29 subjects in the Eleventh Schedule, for example agriculture, minor irrigation, drinking water, poverty alleviation and primary education.
  • History of committees:
    • Balwant Rai Mehta Committee (1957): three-tier system. Rajasthan's Nagaur district was first, on 2 October 1959.
    • Ashok Mehta Committee (1977): two-tier system.
    • G. V. K. Rao (1985) and L. M. Singhvi (1986): constitutional status.

74th Amendment, 1992: Municipalities (Part IXA, Twelfth Schedule)

  • Three types: Nagar Panchayat (area in transition), Municipal Council (smaller urban area) and Municipal Corporation (larger urban area).
  • Ward Committees for population of 3 lakh or more.
  • District Planning Committee (Article 243ZD) and Metropolitan Planning Committee for 10 lakh or more (Article 243ZE).
  • 18 subjects in the Twelfth Schedule, including urban planning, water supply, slum improvement, fire services, and burial and cremation grounds.

PESA Act, 1996

  • Extends Part IX to Fifth Schedule areas with changes.
  • The Gram Sabha has power over minor forest produce, minor minerals, prevention of land alienation, village markets, moneylending, and control over local plans and social sector functionaries.
  • Prior consultation is needed before land acquisition.
  • Chairperson posts at all levels in Scheduled Areas are reserved for STs.
  • Jharkhand's PESA rules were delayed for many years and became a subject of court orders. Check the current status before your exam.

Exam tip: Learn the number pairs: 29 subjects / 11th Schedule / 73rd Amendment and 18 subjects / 12th Schedule / 74th Amendment. Then learn the Article series: 243 to 243O for panchayats and 243P to 243ZG for municipalities.

Mains practice

Write each answer in the word limit your exam sets. Use the notes above for the structure: introduction, body with facts and examples, a short way forward.

  1. Indian federalism is described as 'cooperative' as well as 'competitive'. Explain with examples. (250 words)
  2. The office of the Governor has been a source of friction in Centre-state relations. Discuss with reference to the recommendations of the Sarkaria and Punchhi Commissions. (250 words)
  3. Despite the 73rd Amendment, panchayats remain weak because of the 3Fs: funds, functions and functionaries. Examine. (150 words)

Practice: Federalism, State Government and Local Bodies

11 questions on this unit, marked the BPSC CCE way. Answers and explanations appear after you submit.

Questions
11
Time
9 min
Right answer
+1
Wrong answer
−⅓

The clock starts when you press Start. Unanswered questions score zero. You can mark a question for review and come back to it, as in the real exam.