1. Centre-State Relations
The Working of Indian Federalism

2. 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

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

4. 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..

5. 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

6. 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.

7. 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

8. 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

9. 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

10. 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

11. 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.

12. 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..

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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.