Centre-State Relations

Legislative Relations

Constitutional Provisions

  • Article 246: Defines the distribution of legislative powers between the Centre and the States.
  • List I (Union List): 100 subjects on which Parliament can legislate.
  • List II (State List): 61 subjects on which State Legislatures can legislate.
  • List III (Concurrent List): 47 subjects on which both Parliament and State Legislatures can legislate.
  • Article 254: Parliament can invalidate State laws if they conflict with Union laws.

Key Acts and Amendments

  • 73rd and 74th Constitutional Amendments (1992): Introduced Panchayati Raj and Municipalities as part of the Concurrent List.
  • 11th Schedule (1952): Lists 29 subjects for Panchayats.
  • 12th Schedule (1952): Lists 18 subjects for Municipalities.
  • 10th Schedule (1955): Prohibits defection of MLAs.

Important Cases

  • S.R. Bommai v. Union of India (1994): Established the doctrine of “basic structure” and emphasized the importance of Centre-State relations.
  • Kesavananda Bharati v. State of Kerala (1973): Clarified the scope of Parliament’s power to amend the Constitution.

Key Facts for Exams

  • Dual Polity: India follows a dual polity system with a balance of power between the Centre and the States.
  • Residuary Powers: Remain with the Centre under Article 248.
  • Inter-state Disputes: Resolved by the Inter-State Council established under Article 263.

Administrative Relations

Constitutional Provisions

  • Article 255: States that the Centre shall not exercise executive power in respect of a State except in cases of emergency or with the consent of the State.
  • Article 256: Requires the executive power of the State to be exercised in accordance with the Constitution.
  • Article 257: Prohibits the Centre from giving directions to the States in matters of internal administration.

Key Institutions

  • State Governments: Exercise executive power within their respective states.
  • Union Territories: Administered by the Centre, with some having a legislative assembly (e.g., Delhi, Puducherry).
  • President’s Rule: Imposed under Article 356 in case of failure of constitutional machinery in a state.

Important Dates

  • 1950: Constitution came into effect, establishing the framework for Centre-State relations.
  • 1952: 7th Amendment introduced the Concurrent List.
  • 1992: 73rd and 74th Amendments introduced Panchayati Raj and Municipalities.

Key Facts for Exams

  • Administrative Autonomy: States have autonomy in internal administration.
  • President’s Rule: Can be imposed for up to six months, renewable.
  • Inter-state Council: Facilitates coordination between Centre and States.

Financial Relations

Constitutional Provisions

  • Article 268-286: Regulates the distribution of financial powers between the Centre and the States.
  • Article 280: Establishes the Finance Commission to recommend the distribution of taxes and grants-in-aid.
  • Article 282: Empowers the Centre to make grants to States for specific purposes.

Financial Instruments

Instrument Description
Taxes Central Taxes (e.g., Income Tax, Customs), State Taxes (e.g., Sales Tax, Land Revenue), and Concurrent Taxes (e.g., Excise Duty)
Grants-in-Aid Financial assistance given by the Centre to States for specific purposes (e.g., education, health)
Loans Provided by the Centre to States for development projects
Share in Taxes States receive a share of central taxes (e.g., Income Tax, Excise Duty)

Finance Commission

  • First Finance Commission (1951): Established by the Constitution.
  • Twelfth Finance Commission (2010): Recommended 42% share of central taxes to States.
  • Thirteenth Finance Commission (2015): Recommended 42.5% share of central taxes to States.
  • Fourteenth Finance Commission (2020): Recommended 42.5% share of central taxes to States.

Key Facts for Exams

  • Finance Commission: Appointed every 5 years to review financial relations.
  • Share in Taxes: States receive a share of central taxes as per the Finance Commission recommendations.
  • Grants-in-Aid: Used for specific developmental purposes and are non-recoverable.
  • Loans: Repayable with interest and are used for infrastructure and development projects.

Summary Table: Centre-State Relations

Aspect Centre State
Legislative Powers Union List, Concurrent List State List, Concurrent List
Administrative Powers Central Government, Union Territories State Governments, Panchayats, Municipalities
Financial Powers Central Taxes, Grants-in-Aid, Loans State Taxes, Share in Central Taxes, Grants-in-Aid
Key Institutions Parliament, President, Finance Commission State Legislatures, State Governments, Panchayats, Municipalities
Important Cases Kesavananda Bharati, S.R. Bommai -
Important Acts 73rd, 74th Amendments -
Key Dates 1950 (Constitution), 1992 (73rd, 74th Amendments) -