CENTRE-STATE RELATIONS

Contents

CENTRE-STATE RELATIONS. 1

LEGISLATIVE RELATIONS :- 1

UNION LIST. 1

STATE LIST: -. 1

CONCURRENT LIST: -. 2

ADMINISTRATIVE RELATIONS :- 2

FINANCIAL RELATIONS:- 2

Distribution of Taxes:- 3

Grants in Aid:- 3

RECOMMENDATION OF VARIOUS COMMITTEES:- 4

1. ADMINISTRATIVE REFORMS COMMISSION (1966):- 4

INTER-STATE RELATIONS:- 5

Interstate councils:- 5

Members :- 6

Functions :- 6

TRIBUNAL SET UP AND STATES INVOLVED:- 7

 


The Indian constitution declares India as federal. That means it is a union of states where power is divided between centre and states as per the procedure mentioned in the constitution. In this two tier system, the central government have the final say in all the matters and in this way India is federal but unitary. The Indian constitution describes centre state relations from articles 245 to 293 through part XI of the constitution.

Centre State relations has been divide in to 3 types

1.           Legislative relations

2.           Financial relations

3.           Administrative relations

 

LEGISLATIVE RELATIONS :-

Articles 245 to 255 in the Indian constitution deal with the legislative aspect of centre states relation. Legislation means the power of making a law which is enforceable. Both the central and state governments in India have the power to make laws. But, the matters on which they can make laws differ. While the centre can make laws applicable to the nation as a whole, the states have the power to make laws applicable in their own territory that too in some matters only. Some matters need both the centre and state legislations.

 

UNION LIST:-

Union list Include 100 items where the matters on which only central government can make legislations. The state government does not have any role in framing the laws. These include Foreign affairs, Defence, Armed forces, Communications, Posts and telegraphs, inter-state trade and commerce and so on.

 

STATE LIST: -

State list includes the matters on which the respective state governments can make laws. The state list consists of 61(5 items transferred to concurrent list by 42 amendment; viz. Education, forests, Justice, Weight & measures and Protection of wildlife, animals & birds) subjects which include Public order in the state, police, administration of justice, prisons, Local Governments, agriculture and so on. However, under some situations such as emergency, The Centre will take over the State list as well.

 

CONCURRENT LIST: -

The Concurrent list includes the subjects on which both central and state governments have the power to make laws. The Concurrent list has 52 subjects which include Criminal and Civil procedure, marriage and divorce, economic and special planning, trade unions, labour welfare electricity, newspapers, books and printing presses, population control and so onHowever, the centre has the sole powers to take over the concurrent list if needed.

ADMINISTRATIVE RELATIONS:-

 

Articles 256 to 263 The Indian Constitution deal with the administrative aspect of centre-state relations in India.

·      Regarding Administration, State governments are like sub-ordinates to the Centre. Central government gives directions to the State governments in the course of administrative action.

·      Union government has been armed with the powers of giving directions to state & has been given certain other powers to promote interstate coordination settle interstate river water disputes

·      For above purpose, President may appoint interstate councils (Advisory in nature) to effect coordination b/w the states

·      The construction and maintenance of means of communication (declared to be of national or military importance) by the state;

·       The measures to be taken for the protection of the railways within the state

·      The provision of adequate facilities for instruction in the mother-tongue at the primary stage of education to children belonging to linguistic minority groups in the state

·      The drawing up and execution of the specified schemes for the welfare of the Scheduled Tribes in the state.

 

FINANCIAL RELATIONS:-

Articles 268 to 293 in Part XII of the Constitution deal with Centre - state financial relations.

The division/distribution of taxes from centre and state mainly happens in the following ways:

·      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 the Parliament and the state legislature can levy taxes on subjects enumerated in the Concurrent List.

·      The residuary power of taxation (that is, the power to impose taxes not enumerated in any of the three lists) is vested in the Parliament.

Distribution of Taxes:-

There are several amendments which have introduced major changes in the scheme of the distribution of tax revenues between the centre and states. Also there were several recommendations has been given by Finance commission whenever it is constituted for every 5 years. For example, 14th Finance commission has recommended the devolution of revenue to the states should be 43%, which has been accepted by the centre. The present positions of distribution of taxes are as follows with respect to articles

Article 268 - Taxes Levied by the Centre but Collected and Appropriated by the States Eg: Stamp duties on bills of exchange, cheques, promissory notes, policies of insurance, transfer of shares, Exercise duties on medicinal and toilet preparations.

Article 268A - (Introduced by 88th Constitutional amendment act) - Service Tax Levied by the Centre but Collected and Appropriated by the Centre and the States.

Article 269 - Taxes Levied and Collected by the Centre but Assigned to the States. Eg: Taxes on the sale or purchase of goods, consignment of goods in the 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 Purposes of the Centre

Certain taxes are levied and collected by the state are for example: land revenue, Tax on agriculture income, estate duties, taxes on buildings, on minerals, animals and boats, Exercise duties on liquor, narcotics, tolls, stamp duties, sales tax etc...

Grants in Aid:-

 

·       Prime objective is promoting welfare of STs & raise administration of scheduled areas(Discretionary Grants)

·       Parliament make grants to give financial assistance to states to help overcome budgetary deficits(Statutory Grants)

·       Specific budget grants to states, as in case of jute producing states like WB, Assam, Bihar & Orissa, in lieu of share of Jute export duty, levied by government (Other grant for a temporary period of time)

·       Union can make grants for any public purpose for various national development schemes(Discretionary Grants)

·       Union provides many other grants to states from time to time which mean states depend greatly on Union to get loans. A state government can only borrow within India & cannot raise a new loan without the consent of Union government, if there is an outstanding on previous loans

·       Constitution provides for appointment of finance commission(A 280) by President every 5 years to advise him regarding distribution of resources b/w union & states & other revenue matters

·       Niti Ayog also plays a vital role in financial relations b/w centre & states. It decides outlays of the plans for the country which in turn decides amount of money to be given to various states

 

 RECOMMENDATION OF VARIOUS COMMITTEES:-

1. ADMINISTRATIVE REFORMS COMMISSION (1966):-

·      Establishment of Inter-state Council under Article 263

·      Governors should have long experience and should not belong to any party

·      Delegation of powers (maxim. Possible) to the states

·      To reduce dependency of states centre should provide more financial resource to state

·      Deployment of central forces should be done only on request of state

2. Rajamannar Commission (1969):-

·      Establishment of Inter-state Council under Article 263

·      Emergency provision (A356,357,360) must be repealed

·       All India services should be abolished

·      Certain subjects from union and concurrent list should be transferred to state list

·       Residuary powers should be vested with state government.

·       Planning commission must be disbanded (a statutory body must be appointed).

·      Financial commission should be made permanent body.

3. Sarkaria Commission:-

·      The commission has made 247 recommendations to improve centre-state relations. Some of the recommendations are.

·      A permanent Inter-State Council called the Inter-Governmental Council should be set up under Article 263

·      Article 356 (President’s Rule) should be used very sparingly, in extreme cases as a last resort when all the available alternatives fail.

·      The National Development Council (NDC) should be renamed and reconstituted as the National Economic and Development Council (NEDC)

·      The governor’s term of five years in a state should not be disturbed except for some extremely compelling reasons

·      The surcharge on income tax should not be levied by the Centre except for a specific purpose and for a strictly limited period.

·      The Centre should consult the states before making a law on a subject of the Concurrent List.

·      Inter-state council should be strengthened for dispute resolving between states with respect to water resources.

·      Centre’s control over radio and television should be relaxed.

·      It favoured all India services which Rajamannar commission has suggested to abolish

·      Judges of the high court should not be transferred without their consent.

·      Out of all the recommendations 180 were implemented by the government. The most important implementation is Inter-state council.

INTER-STATE RELATIONS:-

The successful functioning of the Indian federal system depends not only on the harmonious relations and close co-operation between the centre and the state but also between the states inter se. Generally dispute between states is mainly on issues of sharing water resources. Interstate disputes are mentioned in article 262. Parliament by law has the power to distribute of water resources. No courts in the India are given exercise over  the jurisdictions of disputes that parliament made by law.

To resolve the disputes between states a interstate councils (A 263) are step where it has the final in distribution of water resources.

Interstate councils:-

·      President is empowered to constitute an interstate council,

·      To inquiring into and advising upon disputes which may have arisen between States;

·      Investigating and discussing subjects in which some or all of the States, or the Union and one or more of the States, have a common interest; or making recommendations upon any such subject and in particular,  recommendations for the better co-ordination of policy and action with respect to that subject,

·      Establishment in May 1990, on recommendations of Sarkaria commission.

·      Generally Meet 3 time a year with proceedings under camera

Members :-

·       PM (Ex-officio chairperson)

·       6 union ministers (as appointed by PM)

·       CM of all the states & UTs. States ministers can also be invited.

·       Administrators of UTs

Functions :-

Inter-State Council is a recommendatory body and it investigates and discusses such subjects, in which some or all of the States or the Union and one or more of the States have a common interest, for better coordination of policy and action with respect to that subject. It also deliberates upon such other matters of general interests to the States as may be referred by the Chairman to the Council.

Its duties include:

·      Inquiring into and advising upon disputes which may have arisen between/among States

·      Investigating and discussing subjects in which some or all of the States, or the Union and one or more of the States have a common interest

·      Making recommendations upon any such subject for the better coordination of policy and action with respect to that subject


TRIBUNAL SET UP AND STATES INVOLVED:-

SNO

TRIBUNAL NAME

SET-UP IN

STATE INVOLVE

1

Krishna water disputes tribunal

1969

MH, KT, A.P.

2

Godavari water dispute tribunal

1969

MH, KT, A.P, M.P, Orissa

3

Narmada water dispute tribunal

1969

RJ, GUJ, M.P, MH

4

Ravi and Beas water dispute tribunal

1986

PB, HR

5

Cauvery water dispute tribunal

1990

KT, KL, T.N, PUDUCHERRY

6

Second Krishna water disputes tribunal

2004

MH, KT, A.P