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 My Library MPPSC Mains (E .. General Studies .. Part-A(Unit-1) .. Centre State Re ..

Centre State Relations

Table of Content
Introduction
Centre-State Relations
Centre-State Legislative Relations
Centre-State Administrative Relations
Centre -State Financial Relations
Administrative Control of Union Over the State
Practice Questions
Introduction
The Indian federation is not the result of an agreement between independent units, and the units of
Indian federation cannot leave the federation. Thus, the Constitution contains elaborate provisions to
regulate the various dimensions of the relations between the Centre and the States.
The Constitution of India provides clear division of powers between the Union and the States, each
being supreme within the sphere allotted to it.
Though the Centre and the States are supreme in their respective fields, the maximum harmony and
coordination between them is essential for the effective operation of the federal system and this
helps to maintain the relations between the Centre and the States.
CENTRE-STATE RELATIONS

CENTRE-STATE LEGISLATIVE RELATIONS

Articles 245-255 under Part XI of the Indian Constitution deals with the legislative relations such as
division of Legislative powers between the Union and the States with respect to both territory and
the subjects of legislation.
Distribution of Legislative Subjects
The Constitution of India divides legislative authority on various subjects between the Union and the
States in three lists such as the Union List, the State List, and the Concurrent List in the Seventh
Schedule.
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Union List: The Union list at present consists of 100 subjects (originally 97 subjects).
The Parliament has exclusive authority to frame laws on subjects enumerated in the list. These
include foreign affairs, defence, armed forces, communications, posts and telegraph, foreign trade
etc.
State List: The State list at present consists of 61 subjects (originally 66 subjects).
On these subjects ordinarily the States alone can make laws. These include public order, police,
administration of justice, prison, local governments, agriculture etc.
Concurrent List: The Concurrent list at present comprises of 52 subjects (originally 47 subjects)
including criminal and civil procedure, marriage and divorce, economic and special planning trade
unions, electricity, newspapers, books, education, population control and family planning etc.
Both the Parliament and the State legislatures can make laws on subjects given in the Concurrent list,
but in case of repugnancy i.e., conflict between Union and State Laws, the laws made by the
Parliament shall prevail.
However, in case the state law reserved for President consideration received his assent thereto, then
the state law will prevail in that state, and the Parliament has to again make a law on the same
subject matter to override the law made by State Legislature.
Residuary Powers of Legislation
Residuary powers refer to the power of jurisdiction upon subjects that are not mentioned in the state
or concurrent list.
The Union Government enjoys exclusive jurisdiction over such subjects.
Article 248 of the constitution clearly states, "The Union Parliament has exclusive power to make any
law with respect to any matter not enumerated in the Concurrent List or the State List."
Parliament's Power to Legislate on State List
Though under ordinary circumstances the Central Government does not possess the power to
legislate on subjects enumerated in the State List, but under certain special conditions the Indian
Constitution empowers the Parliament to make laws even on state subjects.
When Rajya Sabha Passes a Resolution (Article 249): The Parliament can make laws on a matter in
state list, if the Rajya Sabha passes a resolution in the national interest. This resolution must be
supported by two- thirds of the members of Rajya Sabha present and voting.
The resolution remains in force only for one year and it can also be renewed again but not exceeding
one year at a time. However, State Legislature too can make laws on the same matter, but, in case of
conflict parliamentary law prevails.
During National Emergency (Article 250): When a proclamation of national emergency is in operation,
Parliament can legislate on subjects of the state list.
However, under Article 251, the laws made by the Parliament become ineffective on the expiry of six
months after the emergency has ceased to operate. Here also, state can make laws but in case of
conflict parliamentary law prevails.
When States Make a Request (Article 252): Parliament can also make laws on subjects in the state list
when the legislatures of two or more states pass resolutions requesting the Parliament to enact laws
on that matter.
This law enacted by the Parliament will apply only to the concerned states i.e., states who have
passed such a resolution. But even other states are allowed to adopt the law by passing a resolution
in their legislatures. However, the Parliament also reserves the right to amend or repeal any such Act.
For Implementing International Agreements (Article 253): For implementing the international treaties,
agreements or conventions, the Parliament is authorized to make laws on any subject in the State
List. So, any law passed by Parliament for this purpose cannot be invalidated on the grounds that it
relates to the subject mentioned in the State list.
During President's Rule (Article 356): also make laws with respect to any subject in the State List in
relation to that state, when President's rule is in force in that state.
Even if the President's Rule ends, the law remains in force in the state. However, State Legislature
can repeal or alter or re-enact that law.
Center's Control over State Legislation

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The Constitution empowers the Centre to exercise control over the State Legislature in 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, such as imposing restrictions on freedom of trade and
commerce.
The President can direct the states to reserve money bills and other financial bills passed by the
State Legislature for his consideration during a financial emergency.
Territorial Extent of Central and State Legislation
Article 245(1) of Indian Constitution provides that the State Legislature may make laws for the whole
or any part of the state to which it belongs.
It is not possible for a State Legislature to enlarge its territorial jurisdiction under any circumstances
except when the boundaries of the state itself are widened by an Act of Parliament.
Parliament under Article 246(1) has the power to legislate for the whole or any part of the territory of
India, which includes not only the states but also the Union Territories of India.
Under Article 245(2), it also possesses the power of extra-territorial legislation which no state
legislature possesses. This means that laws made by Parliament will govern not only the persons and
property within the territory of India but also Indian subjects, residents and the property situated
anywhere in the world.
However, the Constitution of India also places certain restrictions on the territorial jurisdiction of the
Parliament. In other words, the laws of Parliament are not applicable in the following areas:
The President can make regulations for the peace, progress and good government of the Union
Territories like Andaman and Nicobar Islands, Lakshadweep, Dadra and Nagar Haveli and Daman and
Diu. A regulation so made has the same force and effect as an Act of Parliament. It may also repeal or
amend any Act of Parliament in relation to these Union Territories.
The Governor is empowered to direct that an act of Parliament does not apply to a Scheduled Area in
the state or apply with specified modifications and exceptions.
The Governor of Assam may likewise direct that an Act of Parliament does not apply to a tribal area
(autonomous district) in the state or apply with specified modifications and exceptions. The President
enjoys the same power with respect to tribal areas (autonomous districts) in Meghalaya, Tripura and
Mizoram
CENTRE-STATE ADMINISTRATIVE RELATIONS
Articles 256 to 263 in Part XI of the Indian Constitution deal explicitly with the administrative relations
between Centre and States. The administrative relations of the Union and the State Governments
extend to the subjects in the Union list and State list respectively.
Distribution of Executive Powers
Article 256 of Indian Constitution lays down that the executive power of every State shall be so
exercised as to ensure compliance with the laws made by Parliament and any existing laws which
apply in that State, and the executive power of the Union shall extend to the giving of such directions
to a state as may appear to the Government of India to be necessary for that purpose.
However, the executive powers of state not to interfere with executive power of Union.
Article 257 of the Indian Constitution provides that the executive power of every state shall be so
exercised as not to impede or prejudice the exercise of the executive power of the Union, and the
executive power of the Union shall extend to the giving of such directions to a state as may appear to
the Government of India to be necessary for that purpose. In short, the Union Government can issue
directions to the State Government even with regard to the subjects enumerated in the state list.
Delegation of Union Functions to the States
Generally executive powers are divided on the basis of subjects in the lists, but under the
Constitutional provision of Article 258(1) the President may, with the consent of the State
Government, entrust (either conditionally or unconditionally) to that government any of the executive
functions of the Centre.
Under Article 258(2), the Parliament is also entitled to use the state machinery for enforcement of
the Union laws and confer powers and entrust duties to the State.
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Under Article 258A, the State can also, with the consent of the Union Government, confer
administrative functions to the Union.
In respect of matters in the Concurrent list, executive powers rest with the State, except when a
Constitutional provision or a Parliamentary law specifically confers it to the Centre.
All India Services
The Constitution of India under Article 312 authorizes the Parliament to create All-India Services on
the basis of a Rajya Sabha resolution to that effect. The Rajya Sabha can do this by passing a
resolution supported by 2/3rd majority of its members present and voting.
Their recruitment, training, promotion, disciplinary matters are determined by the Central
Government. A member of the Indian Administrative Service (IAS), on entry into the service is allotted
a State, where he/she serves under a State Government.
Though, it can be argued that the All-India Services violate the principle of federalism, but such an
arrangement, wherein a person belonging to the All India Service being responsible for administration
of affairs, both at the Centre and States, brings cooperation in administration and helps to ensure
uniformity in the administrative system throughout the country.
Presently, there are three All India Services, namely Indian Administrative services, Indian Police
Services and Indian Forest Service (the Indian Forest Service was created as the third All India
Service in 1966 by Article 312).
CENTRE-STATE FINANCIAL RELATIONS
Articles 268 to 293 of Indian Constitution explicitly deals with the provisions of financial relations
between the Centre and the States. Under these Articles, the Constitution of India has made
elaborate provisions relating to financial matters such as the distribution of tax and non-tax revenues
and the power of borrowing, supplemented by provisions for grants-in-aid by the Union to the States.
Distribution of Taxing Powers
The Parliament of India has exclusive power to levy taxes on subjects enumerated in the Union List,
the State Legislature has exclusive power to levy taxes on subjects enumerated in the State List,
both can levy taxes on the subjects enumerated in the Concurrent List whereas residuary power of
taxation lies with Parliament only.
The Constitution also draws a distinction between the power to levy and collect a tax and the power
to appropriate the proceeds of the tax so levied and collected.
Further, the Constitution also puts restrictions on the taxing powers of the states such as:
• No tax can be imposed on the sale or purchase taking place outside the states,
• No tax can be imposed on the sale or purchase taking place in the course of import or export,
• No tax can be imposed on the sale or purchase taking place in the course of inter-state trade
and commerce,
• A tax imposed on the sale or purchase of goods declared by Parliament to be of special
importance in inter-state trade and commerce is subject to the restrictions and conditions
specified by the Parliament.
Distribution of Tax Revenues
Article 268: Taxes and Duties that are levied by the Centre but Collected and Appropriated by the
States.
Article 269: Taxes Levied and Collected by the Centre but Assigned to the States.
Article 269-A: Levy and Collection of Goods and Service Tax (GST) in Course of Inter-State Trade or
Commerce.
Article 270: Taxes Levied and Collected by the Centre but Distributed between the Centre and the
States.
Article 271: Surcharge on Certain Taxes and Duties for the Purposes of the Centre.
Taxes Levied and Collected and Retained by the States
Distribution of Non-Tax Revenues
The major sources of non-tax revenue for the Centre are the receipts from posts and telegraphs;
railways; banking services; broadcasting, coinage and currency; central public sector enterprises;
and escheat and lapse.
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On the other hand, the major sources of non-tax revenue for the states are the receipts from
irrigation; forests; fisheries; state public sector enterprise; and escheat and lapse.
Grants-in-Aid to the States
The Constitution of India provides for mainly two types of grants-in-aid to the states such as
statutory grants and discretionary grants. These grants are given every year by the Parliament out of
the Consolidated Fund of India to such States which are in need of assistance.
Borrowing by Centre and States
The Constitution made the following provisions with regard to the borrowing powers of the Centre
and the states.
The Central Government can borrow either wit or outside upon the security of the Consolidated Fund
of India or can give guarantees, but both within the limits fixed by the Parliament. So far, no such law
has been enacted by the Parliament.
Similarly, a State Government can borrow within India (and not abroad) upon the security of the
Consolidated Fund of the State or can give guarantees, but both within the limits fixed by the
legislature of that state.
The Central Government can make loans to any state or give guarantees in respect of loans raised by
any state. Any sums required for the purpose of making such loans are to be charged on the
Consolidated Fund of India.
A state cannot raise any loan without the consent of the Centre, if there is still outstanding any part
of a loan made to the state by the Centre or in respect of which a guarantee has been given by the
Centre.
COOPERATION BETWEEN CENTRE & STATES
The Constitution contains the following provisions to secure cooperation and coordination between
the Centre and the States:
The Parliament can provide for the adjudication of any dispute or complaint with respect to the use,
distribution and control of the waters of any inter-state river and river valley.
Under Article 263 of Indian Constitution, the President can establish an Inter-State Council to
investigate and discuss subjects of common interest between the Centre and the States. Such a
council was set up in 1990.
Full faith and credit is to be given throughout the territory of India to public acts, records and judicial
proceedings of the Centre and every state.
The Parliament can appoint an appropriate authority to carry out the purposes of the Constitutional
provisions relating to the interstate freedom of trade, commerce and intercourse but no such
authority has been appointed so far.

Committees and Commissions on Centre-State Relations

Administrative Reforms Commission
Rajamannar Committee
Anandpur Sahib Resolution
West Bengal Memorandum
Sarkaria Commission
Punchhi Commission
ADMINISTRATIVE CONTROL OF UNION OVER THE STATE
Constitutional Emergency in a State or President's Rule
Under Article 356 of the Indian Constitution, the President can declare a Constitutional emergency in
the State in case of a failure of Constitutional machinery.
In such a case, the State Government ceases to hold power. The State comes under President's rule
and the President assumes to himself all or any of the functions of the government of the state. The
State administration comes under the superintendence, direction and control of the Centre.
Duty of the Union to Protect States Against External Aggression and Internal Disturbance
It is the duty of the Union to protect every state against external aggression and internal
disturbances.
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It has to ensure that the government of every state is carried on in accordance with the provisions of
the Constitution. When the President proclaims a national emergency (Article 352), the executive
power of the Union gets extended to the States. He can give directions to any State as to the manner
in which its executive power is to be exercised.
Failure to Give Effect to the Union's Directions
The Constitution lays down that when any state fais to comply with a Union law or fails to carry out
any direction given in the exercise of the executive power of the Union, it becomes lawful for the
President to hold that a situation has arisen for placing that state under a constitutional emergency
(Article 365).
The provision can be used by the Union against any non-cooperating state.
Power to Appoint Inquiry Commissions Against Chief Ministers
Another provision which enables the Union Government to exercise an overall administrative control
over the State administration happens to be the system of appointment of inquiry commissions
against Chief Ministers of States for investigating alleged wrong act.
These points clearly establish the superior role that the Constitution assigns to the Union in the
sphere of administrative relations between the Union and the States. These features also reflect the
unitary characteristics of the Constitution of India.
Practice Questions
Very Short Type Questions
1. Article 271
2. Union List
3. State List
4. Concurrent List
5. Article 249
6. Article 250
7. Article 245
Short Type Questions
1. Examine the composition and organizational structure of the Inter-State Council.
2. Evaluate the role of the Inter-State Council in the context of recent federal disputes and
conflicts.
3. Briefly Explain the center-state relation
Long Type Questions
1. Discuss the constitutional provisions that define the relationship between the Central and State
governments in India. How do these provisions ensure a balance of power?
2. Evaluate the role of the Inter-State Council in facilitating cooperative federalism. How effective
has this institution been in resolving disputes and fostering coordination between the Central
and State governments?
3. Discuss the challenges faced by Indian federalism in maintaining cooperative center-state
relations amidst diverse regional aspirations. How can these challenges be effectively
addressed?
4. Evaluate the role of the Union-State relationship in the context of national emergencies. How do
the provisions related to emergencies affect the balance of power between the Central and
State governments?
5. Indian federalism is moving from co-operative federalism to competitive federalism. Comment.
(2021)

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