Federalism: Centre-State Relations in Indian Polity
Understanding the intricate relationship between the Union (Centre) and the States is crucial for grasping the functioning of India's federal system. This module delves into the constitutional framework, legislative, administrative, and financial aspects of Centre-State relations, vital for competitive exams like the UPSC Prelims.
Constitutional Framework of Centre-State Relations
India's Constitution, while establishing a federal structure, leans towards a strong centre. This is reflected in the distribution of powers and the mechanisms that govern interactions between the Union and the States. The Constitution divides legislative, administrative, and financial powers between the Centre and the States.
Legislative Relations
The legislative powers are distributed among the Union and the States through the Seventh Schedule of the Constitution. This schedule contains three lists: the Union List, the State List, and the Concurrent List.
| List | Number of Subjects | Authority to Legislate |
|---|---|---|
| Union List | 100 (originally 97) | Parliament only |
| State List | 61 (originally 66) | State Legislatures only (with exceptions) |
| Concurrent List | 52 (originally 47) | Both Parliament and State Legislatures |
In case of a conflict between a Union law and a State law on a subject in the Concurrent List, the Union law generally prevails, especially if it has received the assent of the President. However, if a State law enacted on a Concurrent subject has been reserved for the President's consideration and received his assent, then the State law will prevail in that particular State, notwithstanding the Union law. But Parliament can still make a law later on the same subject.
Administrative Relations
The Constitution ensures that the administrative powers of the Union and the States are coordinated. The executive power of every State is to be so exercised as to ensure compliance with the laws made by Parliament and any existing laws which apply in that State. The Union can also give directions to the States on certain matters.
The President can entrust Union functions to State governments, and vice-versa, through mutual agreement. This promotes cooperation and flexibility in governance.
Key mechanisms for administrative coordination include:
- All-India Services: These services (like IAS, IPS, IFS) are recruited and trained by the Centre but serve in the States.
- Inter-State Councils: Established by the President, these councils advise on matters of common interest between the Union and the States.
- Zonal Councils: These are statutory bodies set up to foster inter-State cooperation and coordination on various issues.
Financial Relations
The financial relations between the Centre and the States are complex and are designed to ensure a balanced distribution of financial resources. The Constitution demarcates the taxing powers and the distribution of revenue between the Union and the States.
The financial relations are governed by Articles 268 to 281. The Constitution specifies which taxes are levied and collected by the Union (e.g., Income Tax, Corporate Tax, Customs Duties) and which are levied and collected by the States (e.g., Land Revenue, Sales Tax, State Excise Duties). Some taxes are levied by the Union but collected and appropriated by the States (e.g., stamp duties on bills of exchange). Others are levied and collected by the Union but assigned to the States (e.g., taxes on the distribution of electricity). Crucially, the Finance Commission plays a vital role in recommending the distribution of net proceeds of taxes between the Union and the States, and the allocation of such proceeds between the States.
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Grants-in-aid are another important aspect. Statutory grants are provided under Article 275, while discretionary grants are provided under Article 282. The Finance Commission's recommendations are pivotal in shaping these financial flows and ensuring fiscal federalism.
Emergency Provisions and Centre-State Relations
The Constitution contains provisions that allow the Centre to assume greater control over the States during emergencies. These are:
- National Emergency (Article 352): During a national emergency, the Union Parliament can legislate on any subject in the State List.
- President's Rule (Article 356): If a State fails to function according to the constitutional machinery, the President can assume all or any of the functions of the State government and the powers vested in or exercisable by the Governor.
- Financial Emergency (Article 360): During a financial emergency, the Union can direct States to observe canons of financial propriety and can also issue directions for reduction of salaries and allowances of persons employed in the service of the Union or States.
Article 356
Key Institutions and Commissions
Several institutions and commissions have been established to study and recommend changes in Centre-State relations, ensuring a more harmonious federal structure. These include the Sarkaria Commission, the Punchhi Commission, and the Inter-State Council.
To recommend the distribution of net proceeds of taxes between the Union and the States, and the allocation of such proceeds between the States.
Contemporary Issues and Challenges
Contemporary Centre-State relations are marked by ongoing debates on issues like fiscal federalism, the role of the Governor, the implementation of GST, and the distribution of resources. Understanding these evolving dynamics is crucial for a comprehensive grasp of Indian polity.
Learning Resources
Direct access to the constitutional articles governing Centre-State relations, providing the foundational legal framework.
Details the distribution of legislative powers between the Union and the States through the Union, State, and Concurrent Lists.
Provides access to reports and recommendations of various Finance Commissions, crucial for understanding fiscal federalism.
Articles from the government's flagship publication, offering insights and analysis on contemporary Centre-State issues.
Detailed analyses and summaries of legislative aspects and constitutional provisions related to Centre-State relations.
News articles and opinion pieces from a leading Indian newspaper, offering diverse perspectives on current Centre-State dynamics.
A concise summary of the recommendations of the landmark Sarkaria Commission on Centre-State relations.
An overview of the key findings and recommendations of the Punchhi Commission, which reviewed Centre-State relations.
A video explaining the concept of Indian federalism and its nuances, including Centre-State relations.
A comprehensive overview of federalism in India, covering its historical context, constitutional provisions, and evolution.