Professional Documents
Culture Documents
Submitted to:
Dr. B.K Mahakul
Vivek Rai
Semester- III
Section-C
Roll No.147
TABLE OF CONTENTS
Introduction.................................................................................................................5
Centre State Relation...............................................................................................5
Legislative Relations...................................................................................................6
Administrative Relations...........................................................................................12
Financial Realtions................................................................................,,,,,................15
Current Issue..............................................................................................,....,,..,,.....19
Conclusion...................................................................................................,..,.,,,.......20
References...................................................................................................................21
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OBJECTIVES
To understand the meaning and concept of centre-state relations.
To know the areas of conflict between centre and atate.
To find its relevance in present scenario.
RESEARCH METHODOLOGY
The methodology adopted in this research work is based on SECONDARY sources of
information like books, journals, etc. The present research work contains a critical analysis and
a detailed study of the topic TENSION AREAS BETWEEN CENTRE-STATE IN INDIA.
This research work contains elaborated theoretical research, an overall study of the topic and in
depth and in depth web browsing.
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ACKNOWLEDGEMENTS
On the completion of this project I find that there are many persons to whom I would like to express
my gratitude, since without their help and co-operation the success of this educative endeavour
would not have been possible.
I welcome this opportunity to express my sincere gratitude to my teacher and guide Dr. B.K
Mahakul, who has been a constant source of encouragement and guidance throughout the course of
this work.
I am grateful to the IT Staff for providing all necessary facilities for carrying out this work. Thanks
are also due to all members of the Library staff for their help and assistance at all times.
I am also grateful to all my friends and colleagues for being helpful in their differences and for their
constant support.
Vivek Rai
(Researcher)
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INTRODUCTION
The Constitution of India is federal in form but is more unitary in character. Strengthening the
federal system is necessary for meeting the aspirations of the people who are governed through
State Governments and for preserving the unity of India. Therefore, Centre-State relations, i.e. the
arrangements between the Union Government and the States in regard to their powers, functions
and responsibilities, have always been a crucial issue. The basic structure remains to be one where
legislative, administrative and financial powers are disproportionately concentrated in the Union
Government with the States having a large number of responsibilities without sufficient autonomy.
Alongwith significant socio-economic and political changes occurring in the post-independence
period, Centre-State relations have also undergone some changes. The period since 1991, which
witnessed a paradigm shift in the economic strategy from planned development to a market-oriented
one, has also thrown up new issues and challenges for the federal set-up. These have an important
bearing on the functioning of our democracy as well as the well being of our people.
The need for a thorough restructuring of Centre-State relations, in order to correct existing
imbalances and strengthen the federal system by empowering the States with genuine autonomy, is
therefore being felt strongly. This note is being put forward to initiate a discussion among political
parties and organisations that are genuinely committed to federalism and enable the emergence of a
common platform to bring about a restructuring of Centre-State relations.
India has a federal structure i.e. there is division of powers between the Centre and the State. These
division of powers can be classified into following types :
1. Legislative Powers (enumerated in Articles 245 to 255 in Part XI of the constitution)
2. Administrative Powers (enumerated in Articles 256 to 263 in Part XI of the constitution)
3. Financial Powers (enumerated in Articles 268 to 293 in Part XII of the constitution)
Judicial powers have not been divided among the Centre and the state. As the judicial powers are
exercised by an integrated system of judicial courts only with Supreme Court at its apex followed
by High Court & then the Subordinate courts.
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CHAPTER-1
LEGISLATIVE
RELATIONS
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LEGISLATIVE RELATIONS:
Articles : Article 245 Article 255
ASPECTS IN LEGISLATIVE RELATIONS
1. Territorial extent of central and state legislation
2. Distribution of legislative subjects.
3. Parlimentary legislation in state field.
4. Centre`s control over state legislation.
U.T`s
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President`s rule (Article 356):Parliament empowered to make laws in state list. ~law made is
operative even after the ceasure of president`s rule ~ But can be revealed or altered or re-enacted by
state legislature.
The repeated misuse by the Centre of the provisions of Article 356 of the Constitution to dismiss
State Governments and dissolve State Assemblies has been subverting the federal principle and the
rights of the States. The demand to restrict the use of Article 356 only to cases where there is a
serious threat to national unity or the secular fabric of the country has been raised from various
quarters in successive meetings of the Inter-State Council. In view of the Supreme Court judgement
on the S. R. Bommai case, there is an urgent need to build in strong safeguards in Articles 356 and
365 through appropriate amendments of the Constitution. However, no decision has been taken by
the Union Government in this regard. There is also a new and alarming proposal for Central
deployment of paramilitary forces in the States unilaterally in a situation which the Centre would
consider as an internal disturbance. The provenance of Article 355 needs to be clarified. As has
been repeatedly stressed by several constituents of the Inter-State Council, the term internal
disturbance in Article 355 is related to public order, which is the first entry in the State List. The
proposal for Central deployment of paramilitary forces in a State in a situation which the Centre
would consider as internal disturbance without the States concurrence is unacceptable. Article
355 should be amended on the lines suggested above for Article 356. Apart from external
aggression, only a serious threat to national unity or an assault on the secular principle can be taken
cognizance of.
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CHAPTER-2
ADMINISTR
ATIVE
RELATIONS
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ADMINISTRATIVE RELATIONS
Articles: 256-263
Article 256: The states are expected to comply with the laws of the parliament and not impede the
exercise of the executive powers of the union.
Article 257: Center can issue direction regarding the construction and maintenance
ofcommunications of national or military importance.It can also give instructions to state
forprotection of railways.Expenses incurred by the states on this account are reimbursed by the
Union.
Article 258: The president can entrust officers of the states (with [agreement]or without [legislation
under union list]the consent of state) certain functions of the Union,but the extra costs have to be
met by the Union.
Article 258A: Governor of the state may, with[agreement] the consent of the central
government,entrust to that government any of the executive functions of the state.(no legislative
delegation possible for state).
Article 260: Gov. of India can (by agreement) make law to territories outside India.
Article 261: Full faith and credit shall be given throughout the territory of India to public
acts,records and judicial proceedings of the Union and of every state.
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Article 312:Parliament can create AIS on the basis of resolution passed by Rajya sabha(2/3 rd
majority)
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a pre-conceived view of the Centre as a consensus on the States, as is now often practised.
Instead, each issue should be discussed seriously with written notes from the Centre and the
States, and decisions should be taken democratically and implemented expeditiously. The
Planning Commission should act as an executive wing of the NDC. Unlike the present
10composition of the Planning Board where members and experts are all nominated by the Centre,
there should be adequate representation of the States both for members as well as experts with
at least one from each region with periodic rotation among the States in a region. The restructured
Planning Commission must not act primarily as a representative of the Centre as it is now, but
should also represent fairly the interests of the States.
Inter-state water disputes (Article 262):
Parliament ~ by law ~ distribution/control of water resources.
Parliament ~ No courts in India to exercise jurisdiction in respect of dispute.
Parliament enacted two laws : The river Boards Act(1956)~ request of state governments~
for regulation of river valley, The Inter-State Disputes Act (1956)~ ad-hoc tribunal ~decision
will be final and there will be no scope of judicial review.
Inter-states councils (Articles 263):
To effect co-ordination between the states and C-S.
President can establish councils public interest.
Duties assigned ~ enquire/advice disputes, investigate/discuss ~ common interest,
recommendations for better co-ordination.
Article 131 (S.C to solve inter -state disputes) Vs Article 263 :: S.C (only legal
disputes,binding ), Council(legal/non-legal ,only advisory).
Special Counicls formed: (first 3 ~ president,other 2 ~ parliamentary act).Related subjects.
1.Central council of health
2.central council of local government and urban development.
3. 4 regional councils for sales tax for N,E,W,S zones.
4.Central council for Indian medicine
5.Central council of Homeopathy.
Establishment of inter-state council:
1990 ~ V.P.Singh Government ~ On Sarkaria commission recommendations.
Members: P.M , C.M ,Administrators of U.T, 6 central Cabinet ministers(by P.M)
includingHome minister.
State minister can be invited
Duties assigned ~ enquire/advice disputes, investigate/discuss ~ common
interest,recommendations for better co-ordination.
Meet thrice in a year.
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CHAPTER-3
FINANCIAL
RELATIONS
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FINANCIAL RELATIONS
Fiscal federalism in India has always been deeply problematic, with vertical and horizontal
imbalances not only persisting till date but also getting aggravated in many cases. Resources have
always remained centralised in the hands of the Union Government with the States suffering from
gross inadequacy of resources in relation to their development needs. The already limited
financial and economic decision making powers of the States have got further constrained in the
post-liberalization period.
Article 268-Article 293 Part XII of the Constitution.
The states are greatly dependent on the Center in this sphere as well.Though the constitution
provides independent sources of revenueto states(levy taxes on item nos 45-63of the
statelist),these are not adequeate.Therefore,the states have to depend on the center for
subsidiesand contributions.
1. Distribution of taxes
The 80 th Amendment of 2000 was enacted to give effect to the recommendations of the 10 th
Finance Commission.The commission recommended that out of central taxes and duties 29%
should go to the states.~~ALTERNATIVE SCHEME OF DEVOLUTION.----- came into
effect RETROSPECTIVELY from april1,1996.
The 88 th Amendment added new article 268-A dealing with service tax.Also inserted new
subject to union list Service tax(92-C).Levived by center but collected and appropriated by
both union and state.
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the union list except: Duties and taxes referred in A268,A268-A,A269,A271 and any cess
levied for special purpose. Distribution is prescribed by President of India On the advice of
Finance commission.
SURCHARGE ON CERTAIN TAXES AND DUTIES FOR THE PURPOSE OF CENTER
(Article 271): Parliament can levy surcharges and duties as mentioned in Article 269 and
Article 270. Goes fully to union.
TAXES LEVIED AND COLLECTED AND RETAINED BY THE STATES: Enumerated in
state list~20 in number. Tolls, capitation, fees, sales tax, land revenue,excise duties, tax on
agri income etc.
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CURRENT ISSUES:
i.
Inter- state water disputes ~ kaveri river water disputr between Karnataka and Tamil nadu,
S.C verdict ,River board, Central gov. order (Gazettee). Krishna Water Tribunal, Mullai
periyar dam issue, Hogenakkal Project.
ii.
Goods and services Tax: CGST,SGST ~ 13 th F.C task force report,Distribution issues.
iii.
Smaller states and balance of power: Telengana bill, other seperatists in India, Positive of
Smaller states ~ 2 nd ARC recommendations
iv.
Equal representations of state in rajya sabha: kildip nayyar vs, union of India case ,2 nd Arc
recommendations
v.
vi.
vii.
Naxals: spread along the underdeveloped states, Deployment of central force, Red
corridor,Gov. initiatives.
viii.
Mineral distribution: Constitutional provision ~ Centrelist and state list , Over exploitation,
mining scam(iron ore ,coal)
ix.
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CONCLUSION
The Centre-State divide needs a revisit. Both procedures and institutions need restructuring to meet
the new developmental challenges. Everyone knows that there is lack of adequate reforms in power,
education, health and agriculture, which lie in the purview of the States. We do not have the luxury
of time; our archaic approach and institutions are inconsistent with ambitious growth targets. Some
things are obvious. These need not await the recommendations of future commissions on CentreState relations. A wake up call is overdue.
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References:
1) Breton,Albert(1987),TowardstheTheoryofCompetitiveFederalismEuropeanJournal
ofPoliticalEconomy,Vol.3,No1+2,pp263328.
2) Breton,Albert(1996),CompetitiveGovernments,CambridgeUniversityPress,NewYork.
3) GovernmentofIndia(1988),ReportoftheCommissiononCentreStateRelations,
(Chairman:JusticeR.S.Sarkaria),GovernmentofIndia,NewDelhi.
4) Rao,M.GovindaandNirvikarSingh(2005)PoliticalEconomyofFederalisminIndia,
OxfordUniversityPress,NewDelhi.
5) Rao,M.Govinda(2009),AReviewofIndianFiscalFederalism,ResearchStudysubmitted
totheCommissiononCentreStateRelations;InterStateCouncil,MinistryofHome,
GovernmentofIndia.
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