Centre-State Relations

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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.
Why certain provisions were inserted in the constitution that dealt with the relations between
centre and state?
Federal structure
Also, centre and state are supreme in their respective areas.
But for India to work as an integrated nation, most important necessity for this is the smooth
functioning of centre and state collectively.
Hence, for this purpose, certain provisions regarding the same have been added in the
constitution.
Difference between the legislative powers of Centre and State
Sr.
No.

Centre

State

Centre can make laws for whole or for a particular

area of India.

State can make laws only for the area

which comes under it as territorial area.

Centre can also make laws for Union Territory

subject to some conditions.*

State cant make laws for Union

Territory even when it is located in that
particular state.

Centre has the power to make laws that are extraterritorial in nature i.e. such laws are applicable
outside India.

State cant make such laws.

*Note :
i) If President has the supreme power in the case of Union Territory. If the President thinks that a
particular law is not fit for any union territory he can even repeal or amend that act.
ii) Governor of the state has the power to limit or modify the provisions of any law made by Parliament
on the grounds of protecting the interests of Scheduled Area.
iii) The Governor of Assam may direct that an act of Parliament does not apply to a tribal area
(Autonomous District) in the state or apply with specified modifications and exceptions. The President
enjoys the same power with respect to tribal areas (autonomous districts) in Meghalaya, Tripura &
Mizoram.
Way of distribution of legislative subject
Subjects in India have been divided into three types according to constitution:
1. Union List
2. State List
3. Concurrent List
Sr.
No.

List

Description

Union List

Only Parliament can make laws in the case of a subject listed in the Union
list. It has 100 subjects for now.

State List

Only state can make laws in the case of a subject listed in the State List. It
has 61 subjects for now.

Concurrent List

Parliament and state (both) are allowed to make laws on the subjects listed
in this list. If both have made laws on the same subject then the central law
overrides the state law. It has 52 subjects for now.
42nd Amendment Act, 1976 transferred 5 Subjects from state list to
concurrent list. (those five subjects were education, forests, weights and
measures, protection of wild animals and birds and administration of justice;
constitution and organisation of all courts except the Supreme Court and the
high courts.

Residuary subjects : Only Parliament has the power to make laws on the subjects that are not
enumerated in any of the list mentioned. These subjects are called residuary subjects & the
power the parliament has in case of them is called residuary powers.
This classification of subjects into three lists has been taken by India from the Government of
India Act 1935.
Order of the list in which they have received power: Union list > Concurrent List > State List.
Conditions in which Parliament can make laws on subjects mentioned in the State List
Sr.
No.

Condition

Description

During
Presidents
rule in the
state

centre has the power to make laws on any subject mentioned in the state list.
Such laws remain in place even after the end of Presidents rule in the state.
But state legislature can alter or repeal or re-enact such laws.

To implement centre has the power to make laws on any subject mentioned in the state list so
International as to give effect to any international agreement that India has signed.
Agreement

When states
make a
request

When the state legislatures of two or more states make request to centre to
make laws on a subject mentioned in the state list, then centre has the power
to make laws on subject mentioned in the state list.
But such laws are only applicable to those states who had passed a resolution
for such a request. Other states can also request for such laws.
But they have to pass a resolution of the same in their state legislature. Such
laws made by the centre can only be amended or repealed by Parliament
alone.
(That request made by the state indicates that state has surrendered its power
to make laws on that subject to the centre)

During
National
Emergency

Parliament gets the power to make laws on subjects in state list in case of
proclamation of national emergency. Any law created in this period expires
after six months after the emergency ceases to operate.

When Rajya
Sabha
passes a
resolution

If the Rajya Sabha declares that it is necessary in the national interest that
Parliament should make laws on a matter in the state list, then the parliament
becomes competent to make laws on that matter.
Such a resolution must be supported by two-thirds of the members present and
voting. The resolution remains in force for one year; it can be renewed any
number of times but not exceeding one year at a time.
The laws cease to have effect on the expiration of six months after the
resolution has ceased to be in force.

Other ways in which centre controls states legislative powers

Sr.
No.

Way

Description

By
Governor

Governor can reserve some bills passed by the state legislature for the Presidents
consideration. The President has absolute veto over them.

By
State has to take prior permission from President in case of law made on a certain
President subjects in state list. (like the bill to restrict trade and commerce)

By
President can direct the states to reserve money bills and other financial bills
President passed by the state legislature for his consideration during financial emergency.

Difference between the Executive powers of centre and state

Sr.
No.

Centre

State

Executive power of the centre

extends to whole India

Executive powers of the state is limited to the territorial

extent of the state

Executive power over laws

made on subjects mentioned in
the concurrent list doesnt lie
with the centre.

Executive power over laws made on subjects mentioned in

the concurrent list lies with the state except when a
constitutional provision or a parliamentary law specifically
confers it on the centre.

Restrictions on the use of executive power of the state

Executive power of the state should be used in such a way so
i) as to ensure compliance with the laws made by the Parliament and any existing law which apply in
the state.
ii) as not to impede or prejudice the exercise of executive power of the Centre in the state.
Difference between the legislative and executive power distribution
Distribution of legislative powers between centre and state is rigid (i.e. it cant be changed or
hard to change)
But distribution of executive powers has not been rigid.
Constitution provides for inter-government delegation of functions in order to mitigate rigidity and
avoid a situation of deadlock.
President, may with the consent of the state government entrust to that government any of the
executive functions of the Centre.
Also, the governor of a state may, with the consent of the Central government, entrust to that
government any of the executive functions of the state.
This mutual delegation of administrative functions may be conditional or unconditional.
How All-India Services are good for administration ?
In India there are three types of All-India Services :
i) IAS (Indian Administrative services)
ii) IPS (Indian police Service)
iii) IFS (Indian Forest Services)
It is argued that All-India services violate the principle of federalism. But they are supported on
following grounds:
i) They facilitate liaison, cooperation, coordination and joint action on the issues of common interest
between the Centre and the states.
ii) they help to ensure uniformity of the administrative system throughout the country
iii) they help in maintaining high standard of administration in the Centre as well as in the states.
Difference between the Taxing powers of centre and state
Sr.
No.

Centre

State

Parliament has exclusive power to levy taxes

on subjects enumerated in the Union List

State has exclusive power to levy taxes on

subjects mentioned in the State list

Parliament can levy taxes on subjects

mentioned in the concurrent list.

State can also levy taxes on subjects

mentioned in the concurrent list.

Residuary power of taxation (i.e. the power to

impose taxes not enumerated in any of the
three lists) is vested in the Parliament alone.

Residuary power of taxation (i.e. the power

to impose taxes not enumerated in any of
the three lists) is not vested in the state.

Under this provision Parliament has

imposed gift tax, wealth tax and expenditure
tax.
Distribution of taxes in the centre and state
Sr.
No.

Title

Description

Taxes levied by the centre

but collected and
appropriated by the states
(Article 268)

i) Stamp duties on bills of exchange, cheques, promissory

notes, policies of insurance, transfer of shares and others

Service Tax levied by the

centre but collected and
appropriated by the centre
and the states (Article 268A)

Taxes on services are levied by the centre. But, their proceeds

are collected as well as appropriated by both the centre and the
states. The principles of their collections and appropriation are
formulated by the Parliament.

Taxes levied and collected

by the centre but assigned
to the states (Article 269)

i) Taxes on the sale or purchase of goods (other than

newspapers) in the course of inter-state trade or commerce.

Taxes levied and collected

by the Centre but distributed
between the centre and the
states (Article 270)

i) Duties and taxes referred to in Articles 268, 268-A and 269

(mentioned above).

ii) Excise duties on medicinal and toilet preparations containing

alcohol and narcotics.

ii) Taxes on the consignment of goods in the course of interstate

trade or commerce.

ii) Surcharge on taxes and duties referred to in Article 271.

iii) Any cess levied for specific purposes.

Surcharge on certain taxes

and duties for purposes of
the centre (Article 271)

The Parliament can at any time levy the surcharges on taxes

and duties referred to in Articles 269 and 270. The proceeds of
such surcharges go to the centre exclusively. In other words, the
states have no share in these surcharges.

Taxes levied and collected

and retained by the states

These are the taxes belonging to the states exclusively.

Tension Areas in Centre-State Relations:

Encroachment by the Centre on the State List
Appointment of enquiry commission against the chief ministers
Management of All-India Services (IAS, IFS and IPS)
Discrimination in financial allocations to the states
Deployment of central forces in the states to maintain law and order
Discriminatory and partisan role of governors
Mode of appointment and dismissal of governor
Imposition of presidents rule for partisan interests
Reservation of state bills for the consideration of the President

Role of Planning Commission in approving state projects

Use of electronic media for political purposes
Sharing of finances (between centre and state)
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