N ot es www.iasscore.in 81 G S S C O R E CENTRE-STATE ADMINISTRATIVE RELATIONS The Constitution provides a federal system of government in the country even though it describes India as 'a Union of States. The term implies that firstly, the Indian federation is not the result of an agreement between independent units, and secondly, the units of Indian federation cannot leave the federation. The Indian Constitution contains federal and non- federal features. The federal features of the Constitution include: • A written constitution which defines the structure, organization and powers of the central as well as state government • A rigid constitution which can be amended only with the consent of the state • An independent judiciary which acts as the guardian of the constitution • A clear division of powers between the Center and the States through three lists- Union list, State list and Concurrent lis • The creation of an Upper House (Rajya Sabha) which gives representation to the states, etc. The Constitution also contains a number of unitary features: • The creation of a very strong centre • The absence of separate constitutions for the states • The right of Parliament to amend major portions of the constitution by itself • A single citizenship for all • Unequal representation to the states in the Rajya Sabha • The right of Parliament to change the name, territory or boundary of states without their consent • The presence of All- India Services which hold key positions in the Centre as well as the States appointment of the Governor by the President • The granting of extensive powers to the President to deal with various kinds of emergencies • The right of Parliament to legislate on state subjects on the recommendation of the Rajya Sabha • The presence of a single judiciary with the Supreme Court of India at the apex • The residuary powers under the Indian Constitution are assigned to the Union and not to the States. • The exclusive right of Parliament to propose amendments to the Constitution. • On account of the presence of a large number of non- federal features in the Indian Constitution India is often described as a 'quasi-federal 'country. Indian Polity
N ot es www.iasscore.in 82 G S S C O R E The relations between centre and state are divides as: • Administrative relations • Legislative relations • Financial relations ADMINISTRATIVE RELATIONS i. State's responsibility about the use of their executive powers - Article 256 ii. Responsibility of the construction and maintenance of means of communication - Article 257 (2) iii. Responsibility of the protection of Railways - Article 257 (3) iv. Appointment of Governors by Centre - Article 155 v. Influence of Centre during National Emergency - Article 252 vi. Influence of Centre during Constitutional Emergency - Article 356 vii. To solve disputes regarding the distribution of water of interstate rivers - Article 262 viii. Protection of Federal property in the states ix. All India Services - Article 312 x. To establish Inter - State Council - Article 213 xi. Direction for the welfare of Scheduled Tribes xii. Governor's discretionary power - Assam & Nagaland • The administrative jurisdiction of the Union and the State Governments extends to the subjects in the Union list and State list respectively. The Constitution thus defines the clauses that deal with the administrative relations between Centre and States. During Normal Times 1) Executive Powers of State be exercised in compliance with Union Laws Article 256 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. 2) Executive Powers of State not to interfere with Executive Power of Union Article 257 of the 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 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. 3) Maintain means of communication of National or Military importance: The Union Government can give directions to the state with regard to construction and maintenance of the means of communication declared to be of national or military importance.
N ot es www.iasscore.in 83 G S S C O R E 4) Protection of the Railways Union can issue State Governments necessary directions regarding the measures to betaken for the protection of the railways within the jurisdiction of the State. It maybe noted that the expenses incurred by the State Governments for the discharge of these functions have to be reimbursed by the Union Government. 5) To ensure welfare of Scheduled Tribes in the States: Union can direct the State Governments to ensure execution of schemes essential for the welfare of the Scheduled Tribes in the States. 6) To secure instruction in the mother-tongue at the primary stage of education Union can direct the State Governments to secure the provision of adequate facilities for instruction in the mother-tongue at the primary stage of education to children belonging to linguistic minority groups. 7) To ensure development of the Hindi language Union can direct the State Governments to ensure the development of the Hindi language. 8) To ensure government of a State is carried on in accordance with the provision of the Constitution: Union can direct the State Governments to ensure that the government of a State is carried on in accordance with the provision of the Constitution. If any State failed to comply with any directions given by the Union in exercise of its executive power, then President may hold that, a situation has arisen in which the Government of the State cannot be carried on in accordance with the provisions of the Constitution. Thus he may proclaim President's Rule in that State. 9) Delegation of Union's function to State The President of India can entrust to the officers of the State certain functions of the Union Government. However, before doing so the President has to take the consent of the State Government. But the Parliament can enact law authorizing the Central Government to delegate its function to the State Governments or its officers irrespective of the consent of such State Government. On the other hand, a State may confer administrative functions upon the Union, with the consent of the Union only. 10) Appointment of High Dignitaries: Union has major say in appointment and removal of Governor and appointment of Judges of High Court and Members of State Public Service Commission. 11) All India Services The presence of the All India Services - the Indian Administrative Services, Indian Police Services - further accords a predominant position to the Union Government. The members of these services are recruited and appointmed by the Union Public Service Commission. The members of these services are posted on key posts in the states, but remain loyal to the Union Government. 12) Union to adjudicate Inter-State River Water Dispute The Parliament has been vested with power to adjudicate 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. In this regard, the Parliament also reserves the right to exclude such disputes from the jurisdiction of the Supreme Court or other Courts. During Emergencies 1) Under President's Rule: The State Governments cannot ignore the directions of the Union Government, otherwise the President can take the action against the Government of the State stating that the administration cannot be carried on in accordance with the provisions of the Constitution and thus can impose President's rule on the State. In such an eventuality the President shall assume to himself all or any of the functions of the State Government. 2) Under Proclamation of National Emergency: During a Proclamation of National Emergency, the power of the Union to give directions extends to the giving of directions as to the manner in with the executive power of the State is to be exercised relating to any matter.
N ot es www.iasscore.in 84 G S S C O R E 3) Under Proclamation of Financial Emergency During a Proclamation of Financial Emergency, Union can direct the State Governments to observe certain canons of financial propriety and to reduce the salaries and allowances of all or any class of person serving in connection with the affairs of the Union including the Judges of the Supreme Court and High Courts. Union also requires all Money Bills or Financial Bills to be reserved for the consideration of the President after they are passed by the Legislature of the State. It is thus, evident that in the administrative sphere the States cannot act incomplete isolation and have to work under the directions and in cooperation with the Center.
N ot es www.iasscore.in 85 G S S C O R E LEGISLATIVE AND FINANCIAL RELATIONS LEGISLATIVE RELATIONS Articles 245 to 255 in Part XI of the Constitution deal with the legislative relations between the Centre and the State. i. On the basis of the resolution passed by the Council of State - Article 249, 2/3 majority, Issues of National Interest ii. 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. iii. For the enforcement of International Treaties and Agreements - Article 253 iv. Prior approval of President of India on certain Bills - Article 304 v. Supremacy of Union Parliament during National Emergency - Article 352 vi. During Constitutional Emergency - Article 356 vii. Supremacy of Union Parliament over Concurrent List viii. Residuary Powers are under the control of Union Parliament - Article 248 ix. Power of Union Parliament to abolish State Legislative Council - Article 169 1) Extent of laws made by Parliament and by the Legislatures of States • The Parliament can make laws for the whole or any part of the territory of India. Territory of India includes the states, UTs and any other area for the time being included in the territory of India. Whereas, the state legislature can make laws for whole or any part of state. • The Parliament can alone make 'extraterritorial legislation' thus the laws of the Parliament are applicable to the Indian citizens and their property in any part of the world. 2) Subject-matter of laws made by Parliament and by the Legislation of States • The Constitution divides legislative authority between the Union and the States in three lists- the Union List, the State List and the Concurrent List. • The Union list consists of 99 items. The Union 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. • The State list consists of 61 subjects on which ordinarily the States alone can make laws. These include public order, police, administration of justice, prison, local governments, agriculture, etc. • The Concurrent list comprises of 52 items including criminal and civil procedure, marriage and divorce, economic and special planning trade unions, electricity, newspapers, books, education, population control and family planning, etc. Indian Polity
N ot es www.iasscore.in 86 G S S C O R E • Both the Parliament and the State legislatures can make laws on subjects given in the Concurrent list, but the Centre has a prior and supreme claim to legislate on current subjects. In case of conflict between the law of the State and Union law on a subject in the Concurrent list, the law of the Parliament prevails. 3) Residuary powers of legislation • The Constitution also vests the residuary powers (subjects not enumerated in any of the three Lists) with the Union Parliament. The residuary powers have been granted to the Union contrary to the convention in other federations of the world, where the residuary powers are given to the States. • However, in case of any conflict, whether a particular matter falls under the residuary power or not is to be decided by the court. 4) Parliament's Power to Legislate on State List • Though under ordinary circumstances the Central Government does not possess power to legislate on subjects enumerated in the State List, but under certain special conditions the Union Parliament can make laws even on these subjects. a) In the National Interest (Art. 249) • If the Rajya Sabha declares by a resolution supported by not less than rd of its members present and voting, that it is necessary or expedient in the national interest that the Parliament should make laws with respect to any matter enumerated in the State List (Art. After such a resolution is passed, Parliament can make laws for the whole or any part of the territory of India. Such a resolution remains in force fora period of 1 year and can be further extended by one year by means of a subsequent resolution. b) Under Proclamation of National Emergency (Art. 250) • Parliament can legislate on the subjects mentioned in the State List when the Proclamation of National Emergency is in operation. However, the laws made by the Parliament under this provision shall cease to have effect on the expiration of a period of six months after the Proclamation has ceased to operate. c) By Agreement between States (Art. 252) • The Parliament can also legislate on a State subject if the legislatures of two or more states resolve that it is lawful of Parliament to make laws with respect to any matter enumerated in the State List relating to those State. • Thereafter, any act passed by the Parliament shall apply to such states and to any other state which passes such a resolution. The Parliament also reserves the right to amend or repeal any such act. d) To Implement Treaties (Art. 253) • The Parliament can make law for the whole or any part of the territory of India for implementing any treaty, international agreement or convention with any other country or countries or any decision made at any international conference, association or other body. • Any law passed by the Parliament for this purpose cannot be invalidated on the ground that it relates to the subject mentioned in the State list. e) Under Proclamation of President's Rule (Art. 356) • The President can also authorize the Parliament to exercise the powers of the State legislature during the Proclamation of President's Rule due to breakdown of constitutional machinery in a state.
N ot es www.iasscore.in 87 G S S C O R E • But all such laws passed by the Parliament cease to operate six months after the Proclamation of President's Rule comes to an end. 5) Centre's control over State Legislation • The Constitution empowers the centre to exercise control over the state's legislature in following ways: a) 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. b) Bills on certain matters enumerated in the State List can be introduced in the state legislature only with the previous sanction of the President as imposing restrictions on freedom of trade and commerce. c) 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. FINANCIAL RELATIONS 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.. • 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 household animals, Tax on Minerals, etc.. • Grants to the States - Article 275 • Appointment of Finance Commission - Article 280 • Financial Emergency - Article 360 • Provision of Comptroller and Auditor General • Indian Constitution has made elaborate provisions, relating to the distribution of the taxes as well as non- tax revenues and the power of borrowing, supplemented by provisions for grants-in-aid by the Union to the States. • Article 268 to 293 deals with the provisions of financial relations between Centre and States. • The Constitution divides the taxing powers between the Centre and the states as follows: The Parliament 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 Concurrent List whereas residuary power of taxation lies with Parliament only.
N ot es www.iasscore.in 88 G S S C O R E • The distribution of the tax-revenue between the Union and the States stands as follows: a) Duties Levied by the Union but Collected and Appropriated by the States Stamp duties on bills of Exchange, etc, and Excise duties on medical and toilet preparations containing alcohol. These taxes don't form the part of the Consolidated Fund of India, but are assigned to that state only. b) Service Tax are Levied by the Centre but Collected and Appropriated by the Centre and the States. c) Taxes Levied as well as Collected by the Union, but Assigned to the States These include taxes on the sale and purchase of goods in the course of interstate trade or commerce or the taxes on the consignment of goods in the course of interstate trade or commerce. d) Taxes Levied and Collected by the Union and Distributed between Union and the States: Certain taxes shall be levied as well as collected by the Union, but their proceeds shall be divided between the Union and the States in a certain proportion, in order to effect on equitable division of the financial resources. This category includes all taxes referred in Union List except the duties and taxes referred to in Article, A and 269; surcharge on taxes and duties mentioned in Article 271 or any Cess levied for specific purposes. e) Surcharge on certain duties and taxes for purposes of the Union: Parliament may at anytime increase any of the duties or taxes referred in those articles by a surcharge for purposes of the Union and the whole proceeds of any such surcharge shall form part the Consolidated Fund of India. • Grants-in-Aid • Besides sharing of taxes between the Center and the States, the Constitution provides for Grants-in-aid to the States from the Central resources. There are two types of grants:- 1) Statutory Grants: These grants are given by the Parliament out of the Consolidated Fund of India to such States which are in need of assistance. Different States maybe granted different sums. Specific grants are also given to promote the welfare of scheduled tribes in a state or to raise the level of administration of the Scheduled areas therein (Art. 275). 2) Discretionary Grants Center provides certain grants to the states on the recommendations of the Planning Commission which are at the discretion of the Union Government. These are given to help the state financially to fulfill plan targets (Art. 282). • Effects of Emergency on Center-State Financial Relations:- 1) During National Emergency The President by order can direct that all provisions regarding division of taxes between Union and States and Grants-in-aids remain suspended. However, such suspension shall not go beyond the expiration of the financial year in which the proclamation ceases to operate. 2) During Financial Emergency: Union can give directions to the States- a) To observe such canons of financial propriety as specified in the direction. b) To reduce the salaries and allowances of all people serving in connection with the affairs of the State, including High Courts judges. c) To reserve for the consideration of the President all Money and Financial Bills, after they are passed by the Legislature of the State.