Apna Gyaan

Centre-State Relations!!!! Sounds like an alliance between Centre and State government.

Yes, guys, you guessed it right!! 😊So, till now we have discussed the Parliamentary form of Government, Federal System of Government and now we will discuss Centre-State relationship in India.

So, as we know, India is a union of states. And the Constitution of India provides for a federal system. So, there is a legible distribution of powers between Centre and State.

The relations between the Centre and the States have been mentioned in Parts XI and XII of the Constitution under three heads,

• Legislative relations
• Administrative relations
• Financial relations

Legislative Relations

Articles 245 to 255 in Part XI of the Constitution deal with the legislative Centre-state relations.

The Indian Constitution divides the legislative powers between the centre-state with respect to the territory and the subjects of legislation. So, there are four aspects in the centre-state legislative relations,

• Territorial extent of Central and state legislation,
• Distribution of legislative subjects,
• Parliamentary legislation in the state field and
• Centre’s control over state legislation.

Territorial extent of Central and state legislation

The Parliament can make laws for the whole or any part of India. Whereas a state legislature can make laws for the whole or any part of the state.

The Parliament alone can make ‘extra-territorial legislation’. There is a certain restriction on the jurisdiction of Parliament by the Constitution.

The President can make regulations for the peace, progress and good government of the four Union Territories,

• The Andaman and the Nicobar Islands,
• Lakshadweep,
• Dadra and Nagar Haveli and
• Daman and Diu.

The governor is empowered to direct that an act of Parliament does not apply to a scheduled area in the state.

Distribution of legislative subjects

The Constitution provides for three lists to distribute powers between centre-state. These lists are,

• The Union List,
• The State List and
• The Concurrent List in the Seventh Schedule.

The Union List consists of 100 subjects of national interest. The State List consists of 61 subjects. The State Legislatures have the power to make laws on the subjects included in the State List.

The Concurrent List consists of 52 subjects. Both the Parliament and the State Legislatures can make laws on these subjects. But in case of a conflict between the Union and the State law regarding a subject, the Union law prevails over the State law.

Parliamentary legislation in the state field

In abnormal time, the Constitution empowers the Parliament to make laws on any matters in the state list under the following five extraordinary circumstances,

• If Rajya Sabha passes a Resolution if it is necessary for the national interest.
• During a National Emergency.
• When the legislatures of two or more states pass resolutions requesting the Parliament to enact laws on a matter in the State List.
• To implements international agreements.
• During President’s rule.

Centre’s Control Over State Legislation

Besides the Parliament’s power to legislate directly on the state subjects under exceptional situations, the Constitution also empowers the centre in several other control over the state’s legislative matters.

The governor can reserve certain types of bills passed by the state legislature for the consideration of the President. some of the bills introduced with the previous sanction of the president. President can direct the state to reserve money bill and finance bill during a financial emergency.

Administrative Relations

Articles 256 to 263 in Part XI of the Constitution deal with the administrative relations between the Centre and the states.

The distribution of executive powers between the Union and the States follows, in general, the pattern of distribution of the legislative powers.

The executive power of the Centre extends to the whole of India. The centre has exclusive power of legislation subject enumerated in the Union List.

The state has exclusive power of legislation subject enumerated in the state list. So, for the subjects enumerated in the concurrent List the executive power rests with the states.

Though there is an exception like when a Constitutional provision or a parliamentary law specifically confers it on the Centre.

Centre’s direction to the state

The Centre is empowered to give directions to the states with regard to the exercise of their executive power in the following Matters:

• The construction and maintenance of means of communication by the state.
• For the protection of Railways within the state.
• The provision of adequate facilities for instruction in the mother-tongue at the primary stage of education to children belonging to linguistic minority groups in the state.
• For the execution of the specified schemes for the welfare of the Scheduled Tribes in the state.

Cooperation Between the Centre-States

• Article 261 states that “Full faith and credit shall be given throughout the territory of India to public acts, records and judicial proceedings of the Union and of every State”.
• According to Article 262, the parliament may by law provide for the adjudication of any dispute or complaint with respect to the use, distribution or control of the waters of, or in, any inter-State river or river valley.
• Article 263 empowers the President to establish an inter-State Council to inquire into and advise upon disputes between states, to investigate and discuss subjects.

All India Services

The Centre and the states also have their separate public services called the Central Services and the State Services respectively. In addition, there are all-India services—IAS, IPS, and IFS. The members of these services occupy top positions under both Center and state. These services are controlled jointly by the Centre and the states. The ultimate control lies with the Central government while the immediate control vests with the state governments.

Public Service Commission

• The Chairman and members of a state public service commission, though appointed by the governor of the state, can be removed only by the President.
• The Parliament can establish a Joint State Public Service Commission (JSPSC) for two or more states on the request of the state legislatures concerned. The chairman and members of the JSPSC are appointed by the president.
• The Union Public Service Commission (UPSC) can serve the needs of a state on the request of the state governor and with the approval of the President.

Integrated Judicial System

India has a dual polity but there is no dual system of administration of justice. The Constitution established an integrated judicial system with the Supreme Court at the top and the state high courts below it.

The judges of a state high court are appointed by the president in consultation with the Chief Justice of India and the governor of the state. They can also be transferred and removed by the president. The Parliament can establish a common high court for two or more states. For example, Maharashtra and goa or Punjab and Haryana have a common high court.

Relations During Emergencies

• During the operation of a national emergency (under Article 352), the Centre becomes entitled to give executive directions to a state on ‘any’ matter. It means, the state governments are brought under the complete control of the Centre, though they are not suspended.

• When the president rule imposed on a state or during a state emergency (under Article 356), the president can assume to himself all or any of the functions of the Government of the State and powers exercisable by the Governor or authority in the State, other than the Legislature of the State.

• During the operation of a financial emergency (under Article 360), the Centre can direct the states to observe laws of financial propriety and the President can give other necessary directions including the reduction of salaries of persons serving in the state and the high court judges.

Other Provisions

Article 355 imposes two duties on the Centre,

• To protect every state against external aggression and internal disturbance and
• To ensure that the government of every state is carried on in accordance with the provisions of the Constitution.

The state election commissioner, though appointed by the governor of the state, can be removed only by the President.

Financial Relations

Articles 268 to 293 in Part XII of the Constitution deal with Centre-state financial relations.

Allocation of Taxing Powers

The Constitution divides the taxing powers between the Centre and the states,

1. The Parliament has exclusive power to levy taxes on subjects enumerated in the Union List.
2. The state legislature has exclusive power to levy taxes on subjects enumerated in the State List.
3. Both the Parliament and the state legislature can levy taxes on subjects enumerated in the Concurrent List.
4. The residuary power of taxation (that is, the power to impose taxes not enumerated in any of the three lists) is vested in the Parliament. Under this provision, the Parliament has imposed a gift tax, wealth tax, and expenditure tax.

Distribution of Tax Revenue

The 80th Amendment of 2000 and the 88th Amendment of 2003 have introduced major changes in the scheme of the distribution of tax revenues between the centre and the states.

After these two Amendments, the present position in this regard is as follows:

• Taxes Levied by the Centre but Collected and Appropriated by the States (Article 268) stamp duties and duties of excise on medicinal and toilet preparations, etc.
• Service Tax Levied by the Centre but Collected and Appropriated by the Centre and the States (Article 268-A)
• Taxes Levied and Collected by the Centre but Assigned to the States (Article 269) railways, sea or air, etc.
• Taxes Levied and Collected by the Centre but Distributed between the Centre and the States (Article 270) union excise duties, excise on toilet preparations, etc.
• the taxes levied and collected and retained by the centre (Article 271) customs, a surcharge on income tax, etc.
• Taxes Levied and Collected and Retained by the States, land revenue, taxes on agricultural income, tolls, etc.

Grants in Aid to the States

Article 275 empowers the Parliament to make grants to the states which are in need of financial assistance and not to every state. The statutory grants under Article 275 (both general and specific) are given to the states on the recommendation of the Finance Commission.

Article 282 empowers both the Centre and the states to make any grants for any public purpose, even if it is not within their respective legislative competence. Under this provision, the Centre makes grants to the states. “These grants are also known as discretionary grants, the reason being that the Centre is under no obligation to give these grants and the matter lies within its discretion”.

Effects of Emergency

During the National emergency, the president can modify the constitutional distribution of revenues between the Centre and the states. During a financial emergency, provisions regarding the division of taxes between the centre and the State can be suspended, restrictions on the expenses of the State can be put in place. States have to carry out the Centrally-sponsored schemes.

Thanks and Stay Civilized. 😊