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Centre State Relations in India: Legislative, Administrative & Financial Dynamics

Centre State Relations in India #

“The Indian Constitution is a federal Constitution in as much as it established what may be called a dual polity which will consist of the Union at the Centre and the States at the periphery each endowed with sovereign powers to be exercised in the field assigned to them respectively by the Constitution.”.- D.R. Ambedkar

Unity in Diversity: Dynamics of Centre State Relations in India #

Center-state relations are a vital aspect of India’s political landscape. They shed light on how power is divided between the central government and individual states, with each entity holding supremacy within its own sphere. To govern and manage these relationships effectively, the Indian Constitution includes comprehensive provisions, which we’ll explore in this discussion.

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Although the term “federalism” doesn’t explicitly appear in the Constitution, it’s evident that India’s governance structure leans largely towards federal principles.

K.C. Wheare, a prominent figure in federal theory, defined federalism as a way of dividing power to establish co-existing and independent central and regional governments. He described India’s Constitution as quasi-federal, a unique kind of federation.

In a federal country like India, Centre State Relations play a crucial role in politics, illustrating the division of power between the central government and individual states. Each holds authority in their specific domains, and the Indian Constitution refers to the nation as a “Union of States.”

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Dedicated sections in the Constitution, known as ‘Union-State Relations,’ detail the distribution of executive, legislative, and financial powers between the Centre and the States. Given their supremacy in their respective areas, maintaining harmony and balance on a larger scale is vital. Consequently, the Constitution includes numerous clauses to govern Centre State Relations at various levels.

What are the different types of Centre State Relations in India’s Governance? #

In the Indian Constitution, Part XI is a dedicated section that delves into the intricate dynamics of center-state relations. This part is further divided into two crucial aspects: legislative connections and administrative interactions. Additionally, Part XII covers the essential financial relations between the central and state governments. Let’s take a comprehensive look at these three key components.

  1. Legislative Relations
  2. Administrative Relations
  3. Financial Relations

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Legislative Relations: Articles 245 to 255 in the Indian Constitution #

  • Articles 245 to 255 within the Indian Constitution focus on the intricate interplay of legislative relationships between the Union (Parliament) and the individual states, which includes their respective legislatures.
    • These articles dissect the extent of legislative authority held by both the Union and the states.
  • A closer examination of these provisions underscores that Parliament possesses overriding powers when it comes to state legislatures.
    • These provisions also delineate the specific subjects on which each can legislate, outline the repercussions of conflicts between state and national laws, define Parliament’s residuary powers, and cover various other critical aspects.

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  • Furthermore, Schedule VII within the Constitution plays a pivotal role by categorizing subjects into the Union List, State List, and Concurrent List, providing a structured framework for legislative responsibilities.

Administrative Relations: Articles 256 to 263 of the Indian Constitution #

  • In the Indian Constitution, Articles 256 to 263 cover how the central (national) government and various state governments cooperate in administrative matters.
  • Even though India is a federal country with power shared between these entities, there are rules in place to ensure that state governments follow the laws made by the national Parliament and don’t carry out administrative tasks that go against these laws (Article 256).

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  • To make this cooperation work better, the Sarkaria Commission recommended a concept called “cooperative federalism” in administrative matters. This is important because when many different groups at both the national and state levels work independently, it can lead to confusion and inefficiency in running the country.

Financial Relations: Articles 264 to 293 in the Indian Constitution #

  • Part XII of the Indian Constitution, encompassing Articles 264 to 293, is dedicated to managing the financial ties between the central government and individual states.
  • India’s federal system means that responsibilities for taxation are divided, and it falls upon the central government to distribute funds to the states.
  • This section covers all aspects related to these financial relationships, including the taxation powers of both the center and states, rules for imposing and sharing taxes, financial grants to states, surcharges, and more.
  • An important contemporary example of this financial interplay is the Goods and Services Tax (GST), a dual-tiered tax structure that exemplifies the center-state financial relationship in India.

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Centre State Relations in India and Recommendations for Reform #

  • Balancing Federalism and Central Control: In India, our constitution mixes two important ideas: federalism and central control.
    • To keep our country united while addressing the unique needs of its diverse regions, we need to strengthen how states and the central government work together.
  • Understanding Centre-State Relations: This brings us to the concept of Centre State relations, which involves agreements between the central government (the Union) and the individual states about what each can and should do.
    • There’s an issue because too much power is held by the central government.
    • States have lots of responsibilities but not enough independence.

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  • Central Overreach in Lawmaking: In terms of making laws, problems arise because the central government sometimes makes decisions about matters that should be under state control.
  • Delays in State Law Approvals: There are also delays in getting approval for important laws passed by state governments.
  • Financial Centralization: On the financial side of things, concerns arise because the central government is taking more control over resources and important economic decisions, like planning.
  • Sarkaria Commission: To address these problems, the government set up the Sarkaria Commission in 1983.
    • However, even though the Commission took five years to study the issue and make recommendations, most of its suggestions didn’t fully solve these problems, except for some small improvements in the financial sector.
    • Example: The Commission suggested that municipalities should be allowed to issue bonds without taxes, and it supported decisions made by Chief Ministers on certain taxes. But sadly, even these modest ideas haven’t been put into practice by the central government for nearly two decades.

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  • Punchhi Commission: In 2007, the Indian government established a new commission under the leadership of Justice Madan Mohan Punchhi.
    • This new commission aimed to reevaluate how the central government and states work together, taking into account changes in India’s politics and economy since the Sarkaria Commission’s last review over 20 years ago.
    • The new commission took a thorough look at how things currently work and considered court decisions about who should do what in areas like making laws, running the government, handling emergencies, managing finances, and planning for the future.
    • After all this, in March 2010, the commission made a total of 273 recommendations to improve how the central government and states work together.

Constitutional Provisions and Powers Governing Administrative Relations Framework in India? #

  • Constitutional Provisions: 
    • Articles 256 and 257 empower the Centre to issue directives to ensure state compliance with national directives.
    • Articles 356 and 365 provide mechanisms for Centre intervention in states facing governance challenges or non-compliance.
  • President’s Rule:
    • Article 356 allows Centre governance when stable state governance cannot be established.
    • Article 365 acts as a deterrent, encouraging state compliance to avoid extreme measures.

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  • Union’s Directives and Cooperative Administrative Functions:
    • Article 256 empowers the Union to issue directions to states for specific purposes.
    • Delegation of functions between Union and states (Article 254) fosters cooperation in administrative tasks.
  • All India Services: Article 312 establishes All-India services, ensuring uniformity in officer appointments and discipline.
  • Deploying Forces for National Security: Centre can deploy military and paramilitary forces in states if needed, even against state wishes, for national security.

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  • Role of Joint Public Service: States can establish Joint Public Service Commissions with Parliament’s approval, facilitating inter-governmental recruitment cooperation.
  • Unified Legal System: India has a unified judicial system, with a single hierarchy of courts administering both union and state laws.
  • Inter-State Council: Article 263 empowers the President to establish the Inter-State Council, promoting dialogue on national policies between the Centre and states.

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  • Inter-State Water Disputes in India: Parliament has exclusive authority to adjudicate inter-state water disputes due to India’s complex river systems.

Centre-State Conflicts in India’s Federal System #

The tension between the Centre (the central or federal government) and the State (individual state governments) in a federal system like India is a common feature and arises due to several inherent factors:

  • Imposition of President’s Rule: Article 356 misuse leads to political disputes, even in cases of political instability.
  • Deployment of Central Forces: The Centre’s unilateral deployment of forces occasionally sparks tension over states’ autonomy.

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  • Reservation of Bill: Governors reserving bills for the President’s assent, often on Centre’s advice, raises questions about states’ legislative independence.
  • Fiscal Matters: Conflicts arise over taxation powers, grants, and economic planning, with states sometimes feeling financially dependent on the Centre.
  • Article 131 Ambiguity: Article 131 grants the Supreme Court the power to resolve disputes between states or between the Union and a state.
    • Ongoing legal ambiguity surrounds whether states can challenge Central Acts under Article 131, with contradictory Supreme Court rulings.

Conclusion

Centre-State relations in India are essential for maintaining unity while respecting the diversity of the nation. Despite occasional conflicts, cooperative efforts through joint public services, unified legal systems, and institutions like the Inter-State Council aim to foster understanding and collaboration. However, challenges persist, particularly concerning fiscal matters and political autonomy, requiring ongoing dialogue and reforms to ensure effective governance and balanced federalism.

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UPSC Notes Related Articles
Functions of Parliament Inter State Relations
UPSC Polity Notes Types of Amendments

Centre State Relations FAQs #

Q1. What are Centre state relations?

Ans. Centre State relations revolve around the distribution of authority and tasks between the central government and individual state governments. This dynamic plays a pivotal role in the country’s federal system, shaping how governance works and impacting crucial decision-making processes.

Q2. Which article deals with Centre state legislative relations?

Ans. Article 245 to 255 in the Indian Constitution outlines how legislative authority is shared between the central government and state governments. This division of legislative power applies to both the geographical areas over which they have jurisdiction and the specific topics or subjects they can make laws about.

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 Final Result – CIVIL SERVICES EXAMINATION, 2023.   Udaan-Prelims Wallah ( Static ) booklets 2024 released both in english and hindi : Download from Here!     Download UPSC Mains 2023 Question Papers PDF  Free Initiative links -1) Download Prahaar 3.0 for Mains Current Affairs PDF both in English and Hindi 2) Daily Main Answer Writing  , 3) Daily Current Affairs , Editorial Analysis and quiz ,  4) PDF Downloads  UPSC Prelims 2023 Trend Analysis cut-off and answer key

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 Final Result – CIVIL SERVICES EXAMINATION, 2023.   Udaan-Prelims Wallah ( Static ) booklets 2024 released both in english and hindi : Download from Here!     Download UPSC Mains 2023 Question Papers PDF  Free Initiative links -1) Download Prahaar 3.0 for Mains Current Affairs PDF both in English and Hindi 2) Daily Main Answer Writing  , 3) Daily Current Affairs , Editorial Analysis and quiz ,  4) PDF Downloads  UPSC Prelims 2023 Trend Analysis cut-off and answer key

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AVAILABLE FOR DOWNLOAD SOON
UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
Integration of PYQ within the booklet
Designed as per recent trends of Prelims questions
हिंदी में भी उपलब्ध
Quick Revise Now !
UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
Integration of PYQ within the booklet
Designed as per recent trends of Prelims questions
हिंदी में भी उपलब्ध

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