Centre-State
Relations -
Important Points
INDIAN POLITY
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Centre-State Relations - Important
Points
Introduction
The Constitution of India, being federal in structure, divides all powers (legislative, executive and financial)
between the Centre and the states.
No division of judicial power as the Constitution has established an integrated judicial system to
enforce both the Central laws as well as state laws.
The Centre-state relations can be studied under three heads:
Legislative relations.
Administrative relations.
Financial relations.
Legislative Relations
Related Articles - Articles 245 to 255 (in Part XI) of the Constitution
Being a Federal Constitution, Indian Constitution also divides the legislative powers between the Centre
and the states with respect to both the territory and the subjects of legislation
Territorial Extent of Central and State Legislation
The Constitution defines the territorial limits of the legislative powers vested in the Centre and the states
in the following way:
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The Parliament can make laws for the whole or any part of the territory of India
A state legislature can make laws for the whole or any part of the state.
The Parliament alone can make ‘extraterritorial legislation’.
Thus, the laws of the Parliament are also applicable to the Indian citizens and their property
in any part of the world
Distribution of Legislative Subjects
The Constitution provides for a three-fold distribution of legislative subjects between the Centre and the
states in the Seventh Schedule
1. The Union List
The Parliament has complete authority to make laws
Number of Subjects - 98 Subjects (Originally 97 Subjects)
Examples: Defence, Banking, Foreign Affairs, Currency, Atomic Energy, Insurance, Communication etc.
2. The State List
The state legislature has complete authority to make laws in normal circumstances
Number of Subjects – 59 (Originally 66 Subjects)
Examples: Public Order, Police, Public Health and Sanitation, Agriculture, Prisons etc.
The Concurrent List
Both, the Parliament and state legislature can make laws
Number of Subjects – 52 (Originally 47 Subjects)
Examples: Criminal Law and Procedure, Civil Procedure, Marriage and Divorce, Population Control and
Family Planning
The subjects added to the Concurrent List after 42nd CAA 1976
1. Education
2. Forests
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1. Weights and measures
2. Protection of wild animals and birds
3. Administration of justice; constitution and organisation of all courts except the Supreme Court and
the high courts.
Special Case
The 101st Amendment Act of 2016 has made a special provision with respect to goods and services tax.
Accordingly, the Parliament and the state legislature have power to make laws with respect to
goods and services tax imposed by the Union or by the State.
Residuary Power of Legislation
The power to make laws with respect to residuary subjects (i.e., the matters which are not enumerated in
any of the three lists) is vested in the Parliament.
This residuary power of legislation includes the power to levy residuary taxes.
In US, the residuary powers are left to the states.
The Indian Constitution follows the Canadian scheme when it comes to Residuary Power of Legislation
Conflict in Concurrent List
In case of a conflict between the Central law and the state law on a subject enumerated in the Concurrent
List, the Central law prevails over the state law.
But, there is an exception.
If the state law has been reserved for the consideration of the president and has received
his assent, then the state law prevails in that state.
But, it would still be competent for the Parliament to override such a law by subsequently making a
law on the same matter.
Parliamentary Legislation in the State Field
In abnormal times, the scheme of distribution of legislation power between Centre and states is either
modified or suspended, and as a result Parliament can make laws on any matter enumerated in the State
List in these 5 extraordinary circumstances:
When Rajya Sabha Passes a Resolution
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Such a resolution must be supported by two-thirds of the members present and voting
During a National Emergency
The laws become inoperative on the expiration of six months after the emergency has
ceased to operate.
When States Make a Request
When the legislatures of two or more states pass resolutions requesting the Parliament to
enact laws on a matter in the State List, then the Parliament can make laws for regulating
that matter.
A law so enacted applies only to those states which have passed the resolutions.
To Implement International Agreements
The Parliament can make laws on any matter in the State List for implementing the
international treaties, agreements or conventions.
This provision enables the Central government to fulfil its international obligations and
commitments
During President’s Rule
Centre’s Control Over State Legislation
Under certain exceptional situations, the Constitution empowers the Centre to exercise control over the
state’s legislative matters in the following ways:
The governor can reserve certain types of bills passed by the state legislature for the consideration
of the President.
The president enjoys absolute veto over them.
Bills on certain matters enumerated in the State List can be introduced in the state legislature only
with the previous sanction of the president
The Centre can direct the states to reserve money bills and other financial bills passed by the state
legislature for the President’s consideration during a financial emergency.
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Administrative Relations
Related Articles - Articles 256 to 263 (in Part XI) of the Constitution
Distribution of Executive Powers
The executive power has been divided between the Centre and the states on the lines of the distribution
of legislative powers, except in few cases
In respect of the subjects enumerated in the Concurrent List, the executive power rests with the states
except when a Constitutional provision or a parliamentary law specifically confers it on the Centre
Centre’s Directions to the States
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 (declared to be of national or
military importance) by the state;
The measures to be taken for the protection of the 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; and
The drawing up and execution of the specified schemes for the welfare of the Scheduled Tribes in
the state.
Cooperation Between the Centre and States
The President can establish (under Article 263) an Inter-State Council to investigate and discuss subject of
common interest between the Centre and the states.
Such a council was set up in 1990.
All-India Services
The services included are - IAS, IPS and IFS.
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The members of these services occupy top positions (or key posts) under both the Centre and the states
and serve them by turns.
But, they are recruited and trained by the Centre.
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.
Article 312 of the Constitution authorises the Parliament to create new All-India Services on the basis of a
Rajya Sabha resolution to that effect.
Extra-Constitutional Devices
The non-constitutional advisory bodies include
the NITI Aayog (which succeeded the planning commission)
the National Integration Council
the Central Council of Health and Family Welfare
the Central Council of Local Government
the Zonal Councils, the North- Eastern Council
the Central Council of Indian Medicine
the Central Council of Homoeopathy
the Transport Development Council
the University Grants Commission etc.
Administrative Relations
Included Articles - Articles 268 to 293 in (Part XII) of the Constitution
Allocation of Taxing Powers
The Constitution divides the taxing powers between the Centre and the states in the following way:
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The Parliament has exclusive power to levy taxes on subjects enumerated in the Union List (which
are 13 in number12).
The state legislature has exclusive power to levy taxes on subjects enumerated in the State List
(which are 18 in number).
There are no tax entries in the Concurrent List.
But, the 101st Amendment Act of 2016 has made an exception by making a special
provision with respect to goods and services tax.
This Amendment has conferred concurrent power upon Parliament and State Legislatures
to make laws governing goods and services tax.
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.
Zonal Councils
The Zonal Councils are the statutory (and not the constitutional) bodies.
They are established by an Act of the Parliament, that is, States Reorganisation Act of 1956.
The act divided the country into five zones (Northern, Central, Eastern, Western and Southern) and
provided a zonal council for each zone.
Each zonal council consists of the following members:
Home Minister of Central government.
Chief Ministers of all the States in the zone.
Two other ministers from each state in the zone.
Administrator of each union territory in the zone.
The Home Minister of Central government is the common chairman of the five zonal councils.
Each chief minister acts as a vice-chairman of the council by rotation, holding office for a period of
one year at a time.
The zonal councils aim at promoting cooperation and coordination between states, union territories and
the Centre
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North-Eastern Council
In addition to the above Zonal Councils, a North-Eastern Council was created by a separate Act of
Parliament– the North-Eastern Council Act of 1971.
Its members include Assam, Manipur, Mizoram, Arunachal Pradesh, Nagaland, Meghalaya, Tripura and
Sikkim
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