Centre-State Relations The Working of Indian Federalism

Introduction Dr. Rajendra Prasad “Personally, I do not attach any importance to the label which may be attached to it-whether you call it a Federal Constitution or a Unitary Constitution or by any other name. It makes no difference so long as the Constitution serves our purpose.” Dr. Rajendra Prasad “The general and regional governments of a country shall be independent each of the other within its sphere.” K.C.Where Dual Polity : Quasi Federal or Statutory Decentralization (a) 11th and 12th Part/Chapter of Indian Constitution (b) Three Lists of Distribution of Powers : VII Schedule of Indian Constitution

Legislative Relations Distribution of legislative powers described in the VII Schedule of Indian Constitution as follows: Union list State list Concurrent list

Cont… Union List – Only Union Parliament is empowered to make laws on the subjects given in the Union List. 98 subjects (after 42nd Constitution Amendment Act,1976) (few important subjects listed below) Defense, Foreign Relations, Post, International War and Peace, International Trade, Commerce, Citizenship, Coinage, Railway, Reserve Bank, International Debt, Atomic Energy, etc..

State List – Only State Legislature is empowered to make laws on the subjects given in the State List. 62 subjects (after 42nd Constitutional Amendment Act,1976) (few important subjects listed below) Roads, Agriculture, Irrigation, Prisons, Local Administration, Distribution of Water, Police, etc.. Exception : In the case of Emergency, Union Parliament automatically grabs the power of legislation on the subjects given in the State List

Concurrent List – Both, Union Parliament as well as State Legislatures, have the power of legislation on subjects given in the Concurrent List. 52 subjects (After the 42nd Constitutional Amendment Act, 1942) (few important subjects listed below) Public Health, Education, Tourism Marriage, Divorce, News Papers, Trade Unions, Books, Press, Eatable Items, etc.. In case of disagreement, the legislation passed by Union Parliament shall prevail over the law passed by State Legislatures. Residuary Powers : Article 248, Union Parliament shall make laws over the subjects not included in the above-given lists.

Union Parliament’s Power to Legislate on the Subjects given in the State List On the basis of the resolution passed by the Council of State - Article 249, 2/3 majority, Issues of National Interest On the request of two or more state legislatures – Article 252, Law passed by Union Parliament shall be applicable only to the states which demanded such legislation. For the enforcement of International Treaties and Agreements – Article 253 Prior approval of President of India on certain Bills – Article 304

Cont… Supremacy of Union Parliament during National Emergency – Article 352 During Constitutional Emergency – Article 356 Supremacy of Union Parliament over Concurrent List Residuary Powers are under the control of Union Parliament – Article 248 Power of Union Parliament to abolish State Legislative Council – Article 169

Administrative Relations State’s responsibility about the use of their executive powers – Article 256 Responsibility of the construction and maintenance of means of communication – Article 257 (2) Responsibility of the protection of Railways – Article 257 (3) Appointment of Governors by Centre – Article 155 Influence of Centre during National Emergency – Article 252 Influence of Centre during Constitutional Emergency – Article 356

Cont… To solve disputes regarding the distribution of water of inter – state rivers – Article 262 Protection of Federal property in the states All India Services – Article 312 To establish Inter – State Council – Article 213 Direction for the welfare of Scheduled Tribes Governor’s discretionary power – Assam & Nagaland

Financial Relations Sources of revenue of Union Government Custom and Export Duty Income Tax Corporation Tax Estate Duty (Excluding Agriculture) Excise Duty on Tobacco and other intoxicants Succession Duty (Excluding Agriculture) Inter – State Trade Tax, etc.

Cont… 2 Sources of Revenue of State Governments Taxes on agriculture, House Tax, Tax on Electricity, Toll Tax, Entertainment Tax, Tax on Boats, Tax on Vehicles, Tax on cattle and house-hold animals, Tax on Minerals, etc..

Cont… Grants to the States – Article 275 Appointment of Finance Commission – Article 280 5 Financial Emergency – Article 360 6 Provision of Comptroller and Auditor General

Critical Evaluation of Centre - State Relations Factors responsible for tension between centre and the states Partial role of Governors Role of Bureaucracy Misuse of Article 356 Constitutional Amendments to make the centre strong Financial problems of the state

Cont… Arbitrary use of the Central Reserve Police Provision to reserve Laws passed by the state legislature for the approval of the President Centralized planning Finance Commission – An agency of central government Disputes among different states

Need to Re-evaluate Centre – State Relations More powers to the state Residuary powers to the state Reform in the office of Governor Not to hold the Bills passed by the State Legislatures Delete Article 356 & 249

Cont… Equal representation of states in council of states (Rajya Sabha) Financial Autonomy to States Reforms in all India services Participation of states in planning

Recommendations of Sarkaria Commission Justice R. S. Sarkaria headed a three member commission, instituted in 1983 which gave 247 recommendations for betterment of centre – state relations, of which important few are listed below: - Advocacy of strong centre Establishment of Inter – State Council National Development Council Zonal Councils Careful use of President’s rule in states

Cont… Appointment of Governors Appointment of High Court Judges All India Services Emphasis on local / regional languages Planning Commission : A fair play of states Balanced Distribution of Powers Deployment of Armed Forces

Conclusion On April 27, 2007, a commission to review the Centre – State Relations is instituted under the headship of Mr. M. M. Punchchi - former Chief Justice of India. Further to conclude in the words of Mr. A. H. Birch “…..the practice of administrative co-operations between the general and regional governments, the partial dependence of the regional government upon payments from the general governments, and the fact that the general governments, by the use of conditional grants, frequently promote developments in matters which are constitutionally assigned to the regions.” A. H. Birch Co-operative federalism produces a strong central or general government, yet it does not necessarily result in weak provincial governments that are largely administrative agencies for central policies. Indian federalism has demonstrated this.