Centre and State Relations

Centre and State Relations in India

The Indian Constitution provides a unique federal structure where powers are divided between the Centre (Union Government) and the States. However, this federal system has a strong unitary tilt, allowing the Centre to wield significant power over states in specific situations. Understanding Centre-State relations is crucial for UPSC aspirants as it forms a key component of Indian polity.

The relations between the Centre and the States in India are primarily governed by three dimensions: Legislative Relations, Administrative Relations, and Financial Relations. Let’s explore each of them in detail:

1. Legislative Relations

Articles 245-255 in Part XI of the Indian Constitution deal with legislative relations between the Centre and the States.

Division of Powers:

Union List (List I): The Union Parliament has exclusive powers to legislate on subjects enumerated in this list. This includes areas of national importance like defense, foreign affairs, atomic energy, etc.
State List (List II): The State Legislatures have exclusive powers to legislate on subjects in this list, such as police, public health, and agriculture.
Concurrent List (List III): Both the Union and State Legislatures can legislate on subjects in this list, including education, marriage, bankruptcy, and forests. However, in case of conflict, the law made by Parliament prevails.

Residuary Powers:

The Union Parliament has exclusive authority to legislate on subjects that are not mentioned in any of the three lists. These are called residuary subjects and cover modern issues like cybersecurity and space exploration.

Key Aspects of Legislative Relations:

Doctrine of Pith and Substance: If a law appears to encroach on another jurisdiction’s domain, the courts determine its legality based on the ‘substance’ of the legislation, rather than its form.
Repugnancy Doctrine: If there is a conflict between a Union law and a State law on a concurrent subject, the Union law prevails. However, if the State law has received the President’s assent, it prevails in that particular State.

Parliament’s Authority Over State Legislation:

Article 249: Parliament can legislate on a matter in the State List if it is in the national interest and the Rajya Sabha passes a resolution by a two-thirds majority.
Article 250: During a national emergency, Parliament can make laws on subjects in the State List.
Article 252: If two or more states request Parliament to legislate on a particular subject in the State List, the law made by Parliament will apply only to those states. Other states can adopt it later.

2. Administrative Relations

Administrative relations between the Centre and the States are detailed under Articles 256 to 263 of the Constitution.

Distribution of Executive Powers:

The Union Government’s executive power extends to matters on which Parliament can legislate, while the State Government’s executive power covers areas under the State List.
Article 256 mandates that state governments must ensure compliance with Union laws. The Centre can issue directions to states for this purpose.

Centre’s Control Over States:

Article 257: The Union can direct states to take necessary action to ensure compliance with Union laws.
Article 258: The President can entrust Union responsibilities to State authorities.
Article 355: It is the duty of the Centre to protect states from external aggression and internal disturbances and to ensure that governance in the states is carried out according to the provisions of the Constitution.

Cooperation Between the Centre and States:

Inter-State Council: Established under Article 263, this body facilitates coordination and communication between the Union and State governments.
Zonal Councils: These are advisory bodies created by the States Reorganisation Act of 1956 to promote cooperation and development among states.

3. Financial Relations

Financial relations between the Centre and the States are governed by Articles 268 to 293 in Part XII of the Constitution.

Distribution of Revenue:

Taxes Exclusively Levied by the Union: Some taxes like customs duties, excise duties on certain goods, and corporate tax are collected and appropriated by the Union.
Taxes Exclusively Levied by the States: States have the authority to collect taxes like land revenue, excise on alcohol, and taxes on agriculture.
Shared Taxes: Some taxes, such as income tax and GST (Goods and Services Tax), are shared between the Centre and the States based on recommendations by the Finance Commission.

Financial Adjustments:

Grants-in-Aid: The Union government provides financial assistance to certain states in need through grants-in-aid. These are primarily given to states with weak fiscal capacities to carry out specific schemes.
Finance Commission: The President of India appoints the Finance Commission every five years to recommend the distribution of taxes between the Centre and the States, and to suggest measures to improve the financial standing of states.

Borrowing Powers:

States can borrow money from within India based on the guarantees provided by the Centre. However, they cannot raise external loans without the Centre’s consent.

4. Other Aspects of Centre-State Relations

Role of the Governor:

The Governor, as the constitutional head of the state, acts as a link between the Centre and the State. The Governor is appointed by the President of India and holds powers that, at times, allow the Centre to influence state affairs, especially in cases involving constitutional breakdown.

President’s Rule:

Under Article 356, if a state government cannot function according to constitutional provisions, the President can impose President’s Rule, effectively bringing the state under direct Central control. This provision has often been criticized for its misuse, though the Supreme Court, in the S.R. Bommai case (1994), laid down guidelines to curb arbitrary imposition of President’s Rule.

Role of the Judiciary:

The judiciary plays a pivotal role in resolving disputes between the Centre and the States. The Supreme Court of India acts as the final arbiter in matters relating to the division of powers. Judicial review ensures that neither the Centre nor the States exceed their constitutional mandates.

Challenges and Reforms in Centre-State Relations

Challenges:

Fiscal Imbalance: States often rely on the Centre for financial resources, leading to imbalances in autonomy.
Political Differences: When different political parties govern at the Centre and in the States, tensions can arise, especially with regard to the exercise of powers like imposing President’s Rule.
Regionalism: States often demand greater autonomy, especially in regions with unique ethnic or linguistic identities. Such demands challenge the balance of federalism.

Suggested Reforms:

Strengthening Fiscal Federalism: Addressing fiscal imbalances by giving more taxing powers to states or improving the mechanism of revenue sharing can enhance state autonomy.
Decentralization of Powers: Empowering states with greater legislative and administrative autonomy could ease Centre-State friction and promote cooperative federalism.
Improved Coordination Mechanisms: Bodies like the NITI Aayog and the Inter-State Council can play a larger role in resolving Centre-State issues through dialogue and consultation.

Conclusion

Centre-State relations form a dynamic and evolving aspect of Indian federalism. While the Constitution provides a clear framework for the division of powers, real-world politics and emerging challenges often strain these relations. UPSC aspirants must understand these intricacies, as they form the backbone of governance in India and are crucial for maintaining the delicate balance between unity and diversity in the Indian federal structure.

Maximize the benefits of mock tests for IAS and KAS preparation with guidance from Amoghavarsha IAS Academy . For more details, visit https://amoghavarshaiaskas.in/.

Youtube: click here

Amoghavarsha E Magazine

Current Affairs ( Prelims )

Current Affairs ( Mains )

UPSC

KPSC

Centre and State Relations