📚 Study NotesUPSC CSE PrelimsIndian Polity and Governance · Federal System and Local Governance📁 Indian Polity and Governance⏱ ~4 min read🕒 Updated 22 Oct 2026
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Federal System and Local Governance — Short Notes

⭐ Important points upar highlighted hain — pehle wo padho, phir detail me samjho, aakhir me practice karo.

⭐ Sabse Important Points · एक नज़र में

  • Seventh Schedule: Divides subjects into Union List (97 entries), State List (66 entries), and Concurrent List (47 entries); residuary powers rest with Parliament.
  • 73rd Amendment: Adds Part IX (Articles 243 to 243O) and Eleventh Schedule (29 subjects) for Panchayats; mandates reservation for SCs/STs and one-third for women.
  • Article 356: President's Rule allows Union control over a State's administration, a key unitary feature.
  • 74th Amendment: Adds Part IXA (Articles 243P to 243ZG) and Twelfth Schedule (18 subjects) for Municipalities; provides for Nagar Panchayats, Municipal Councils, and Municipal Corporations.
  • Inter-State Council: Established under Article 263 to coordinate between States and the Union; recommendatory in nature.
  • State Finance Commission: Constituted every five years under Article 243I (PRIs) and 243Y (ULBs) to review the financial position of local bodies.

Introduction · परिचय

The Indian Constitution establishes a federal system with a strong unitary bias, distributing powers between the Union and States. Local governance, through Panchayati Raj and Urban Local Bodies, is a vital third tier enabled by the 73rd and 74th Constitutional Amendments. This topic is crucial for UPSC Prelims as it tests conceptual clarity on federal features, centre-state relations, and the structure and functions of local bodies.

Federal System and Centre-State Relations

India is a 'Union of States' (Article 1) with federal features like dual polity, division of powers (Union, State, Concurrent Lists under Article 246 and Seventh Schedule), and an independent judiciary. However, it has strong unitary features: single citizenship, integrated judiciary, appointment of Governors, emergency provisions (Articles 352-360), and residuary powers with the Union (Article 248). The Constitution is neither purely federal nor unitary but a blend, often termed 'quasi-federal' or 'federal with a unitary bias'.

⚖️ Comparison · अंतर साफ-साफ
Federal FeaturesUnitary Features
Dual polity and dual citizenship (for States)Single citizenship
Division of powers via Seventh ScheduleResiduary powers with Union
Independent judiciary and bicameralismAppointment of Governor by President
Written and rigid constitutionEmergency provisions (Articles 352-360)

⭐ Key Points · याद रखने वाली बातें

  • Seventh Schedule: Divides subjects into Union List (97 entries), State List (66 entries), and Concurrent List (47 entries); residuary powers rest with Parliament.
  • Article 356: President's Rule allows Union control over a State's administration, a key unitary feature.
  • Inter-State Council: Established under Article 263 to coordinate between States and the Union; recommendatory in nature.
  • GST Council: Created by the 101st Amendment (2016) as a constitutional body for cooperative federalism on indirect taxes.

✍️ Solved Example 1 · हल किया हुआ उदाहरण

❓ Question: Which schedule of the Constitution distributes legislative powers between the Union and States?

✅ Solution: Seventh Schedule

💡 Explanation: Article 246 read with the Seventh Schedule contains the Union, State, and Concurrent Lists, defining the legislative competence of Parliament and State Legislatures.

Local Governance: Panchayati Raj and Urban Local Bodies

The 73rd and 74th Constitutional Amendments (1992) gave constitutional status to Panchayati Raj Institutions (PRIs) and Urban Local Bodies (ULBs), adding Parts IX and IXA and Schedules XI and XII. They mandate a three-tier PRI system (village, intermediate, district) in States with population above 20 lakh, and constitute State Election Commissions and State Finance Commissions. Local bodies are institutions of self-government, not federal units, and are subject to State legislation.

🔷 Flow Chart · क्रम में समझो
  1. 73rd/74th Amendment
  2. State Legislature passes conformity law
  3. Constitution of PRIs/ULBs
  4. State Election Commission conducts elections
  5. State Finance Commission reviews finances

⭐ Key Points · याद रखने वाली बातें

  • 73rd Amendment: Adds Part IX (Articles 243 to 243O) and Eleventh Schedule (29 subjects) for Panchayats; mandates reservation for SCs/STs and one-third for women.
  • 74th Amendment: Adds Part IXA (Articles 243P to 243ZG) and Twelfth Schedule (18 subjects) for Municipalities; provides for Nagar Panchayats, Municipal Councils, and Municipal Corporations.
  • State Finance Commission: Constituted every five years under Article 243I (PRIs) and 243Y (ULBs) to review the financial position of local bodies.
  • District Planning Committee: Article 243ZD mandates a DPC to consolidate plans prepared by Panchayats and Municipalities in the district.

✍️ Solved Example 1 · हल किया हुआ उदाहरण

❓ Question: Which Constitutional Amendment is known as the 'Panchayati Raj Amendment'?

✅ Solution: 73rd Amendment Act, 1992

💡 Explanation: It inserted Part IX and the Eleventh Schedule, giving constitutional status to Panchayati Raj Institutions and mandating three-tier structures, elections, and reservations.

Practice Questions · खुद हल करके देखो

पहले खुद try karo, phir “Answer dekho” dabakar check karo. 👇

Q1The residuary powers of legislation in India are vested in:

👀 Answer dekho

✅ Answer: Parliament

💡 Explanation: Article 248 and Entry 97 of the Union List give Parliament exclusive power to legislate on subjects not enumerated in the State or Concurrent Lists.

Q2Which of the following is NOT a mandatory provision of the 73rd Constitutional Amendment?

👀 Answer dekho

✅ Answer: Reservation of seats for women in Panchayats at all tiers (it is mandatory, so a better answer would be 'Grama Sabha constitution'—but Gram Sabha is mandatory too; a correct non-mandatory item is 'Financial powers of Panchayats')

💡 Explanation: The amendment mandates Gram Sabha, three-tier structure, elections, reservations, and State Finance Commission. Devolution of financial powers is left to State legislatures, hence not mandatory in a uniform manner.

Q3The District Planning Committee is constituted under which Article?

👀 Answer dekho

✅ Answer: Article 243ZD

💡 Explanation: Article 243ZD (74th Amendment) requires every State to constitute a District Planning Committee to consolidate plans of Panchayats and Municipalities.

⚠️ Common Mistakes · ये गलतियाँ बिल्कुल मत करना

  • Confusing the 73rd and 74th Amendments: Remember 73rd = Panchayats (rural), 74th = Municipalities (urban).
  • Assuming local bodies are federal units: They are created by State legislation and derive powers from the State; they are not sovereign.
  • Mixing up the Eleventh and Twelfth Schedules: Eleventh (29 subjects) for Panchayats, Twelfth (18 subjects) for Municipalities.

⚡ Quick Revision · Exam से पहले 2 मिनट में दोहराओ

  • Article 1: Describes India as a 'Union of States', indicating the federal structure is not the result of an agreement among States.
  • Seventh Schedule: Union (97), State (66), Concurrent (47) Lists; residuary powers with Parliament (Article 248).
  • 73rd Amendment: Part IX, Articles 243-243O, Eleventh Schedule (29 subjects), three-tier system, State Election Commission, State Finance Commission.
  • 74th Amendment: Part IXA, Articles 243P-243ZG, Twelfth Schedule (18 subjects), three types of municipalities, District Planning Committee (Article 243ZD).
  • Inter-State Council: Article 263; GST Council: Article 279A (101st Amendment) for cooperative federalism.

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