Correct Option
The correct option is (b) 2 only.
Explanation
The Indian Constitution establishes a federal system of government with a division of powers between the Union and the States. While it contains unitary bias, the fundamental structure ensures that State governments have an independent constitutional existence and are not subordinate to the Centre in their defined spheres.
Statement-wise Analysis
- Statement 1 is Incorrect. In a federal setup, State governments are not merely agents or subordinates of the federal (Union) government. They have their own independent constitutional status and specific powers assigned to them by the Constitution. The Supreme Court, in the S.R. Bommai case (1994), explicitly stated that States have an independent constitutional existence and are not satellites or agents of the Centre.
- Statement 2 is Correct. Both the Union Government and the State Governments derive their authority directly from the Constitution. The Constitution is the supreme law of the land, and it delineates the jurisdiction, powers, and functions of each tier of government.
- Statement 3 is Incorrect. Financial autonomy is a crucial feature of a federal system. The Constitution of India clearly specifies the sources of revenue for each tier of government to ensure they can perform their functions effectively. The Seventh Schedule (Union List and State List) and Part XII of the Constitution detail the taxing powers and financial relations, ensuring clarity on where each tier obtains money for its work.
Key Takeaway: In the Indian federal system, States draw their authority directly from the Constitution, not from the Centre. Furthermore, the Constitution clearly demarcates revenue sources for both the Union and States to ensure financial autonomy.