IASbaba Mains Value Add Notes

Paper II: POLITY

Sub-Topic

ISSUES AND CHALLENGES PERTAINING TO FEDERAL STRUCTURE

FRAMEWORK OF MAINS NOTES TO BE GIVEN

HISTORICAL BACKGROUND
BASIC UNDERSTANDING
FACTORS WHICH HAVE INFLUENCED INDIAS FEDERAL SET-UP
ISSUES
COMMITTEE RECOMMENDATION
PREVIOUS YEARs MAINS QUESTIONS WITH DIRECTIONS TO SOLVE
MIND-MAPPING
RECENT NEWS & CONTROVERSIES (DYNAMIC)

Evolution of Centre-State relation in Post-independence

Post-1980
1967-1980

PostIndependence
Absolutely no
friction in CentreState relation due
to one party
domination.

Centre-state
relation was put
for real testing.
Coalition politics
was flourishing at
statelevel.

Very Complex
Centre-State
relations due to
coalition politics
at both Centre
as well as States
level and
economic
liberalization.

Evolution of Centre-State Relation

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Discussion on Centre-State relation in current scheme:
Centre-state relation in current scenario is very complex and has a number of facets that
can be discussed under following subheadings
1. Constitutional Scheme of Centre-State Relations
2. Economic and Financial Relations
3. Local Governments and Decentralized Governance
4. Criminal Justice, National Security and Centre-State Co-operation
5. Natural Resources, Environment and Inter-state waters
6. Land and Agriculture Infrastructure Development and Mega Projects Socio-Political
Developments,
7. Public Policy and Governance and Social, Economic and Human Development

Constitutional Scheme of Centre-State Relations

Constitution of India provides for elaborate provisions for purpose of greater degree of cooperation between Centre and States. Moreover, the union government has also been
active and set-up various commission and committees to look after the relation in light of
ever changing dynamics of the relation. However, the constitutional scheme can be mainly
classified into following three facets:

1.

2.

3.

Legislative
Relations

Administrative
Relation

Financial
Relation and
Planning

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Legislative Relations between Centre and States:

Articles 245-255 provides for the detailed legislative relations between Centre and
States. However, the significant ones can be shortlisted as
1. Article 249: Extraordinary power of the Parliament to enact legislation even
on matters those come under states list. For this, Rajya Sabha has to pass a
resolution supported by no less than 2/3rd of the total members. It lasted for
one year but can be renewed by the same process as well.
2. Article 250: Administrate Centre-State legislative relation during
proclamation of an emergency.
3. Article 252: Gives powers to Parliament to legislate with the consent of the
state.
4. Article 253: It provides powers to Parliament to legislate for purpose of giving
effects to treaties and international agreements.
5. Article 254:
6. Article 356: This is the most significant Article that characterizes the CentreState relation during an emergency.

Issues, hindering the legislative relation between Centre and States:

Provision of Residuary Powers: Originally, in the constitution the residuary powers

had been kept with the Centre and this was done seeing the then situation of states.
The states had not enough resources. They were not capable enough to tackle or
legislate on any unforeseen matter of significance. But in other mature Democracies,
such as the United States of America (USA), Switzerland and Australia, the residuary
powers essentially lie within the states because of their well resourced states.

Why Residuary Powers is perceived as a bone of contention between Centre and States?
Residuary powers include the power of any law, imposing a tax which is not mentioned in
any of lists. The power of making law under residuary powers is perceived as inconsistent
with the true federal character of the constitution.
Regarding this, Sarkaria Commission recommended that the residuary powers of legislation
regarding taxation matters should be within Centre but rest of other powers must be
transferred to states.

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Union of India: Indestructible Union of Destructible States

Unlike USA federation and other federals, Parliament of India has power to
reorganize the states or to alter the boundaries of the states even without the
consent of the states. This sometimes results into sentiment against the centre and
of course, there are scopes of misusing such powers. Only recently, the Andhra
Pradesh state assembly had rejected the resolution of the union to create another
state Telangana. This shows that in creating or reorganizing, the centre always has
an upper hand.

Relevance of Article 254 in Centre and state relations:

It is apparent that if the legislature of states will enact legislation with respect to
issues in Concurrent list that is repugnant upon the Union laws but has been kept
reserve for President assent and receives Presidents assent then it shall prevail
irrespective of repugnancy upon the union laws
However, article 254 empowers Parliament to enact the law again and with larger
immunity.
This article sometimes has been referred as repugnant and overriding on federal
character but the constitution framers had maintained the parliament supremacy
right from the working of constitution and thus, the article 254 is materialization of
the Parliamentary Supremacy.

Executive or Administrative Relations between Centre and State:

Constitution of India does not provide explicitly about the administrative relations
between Centre and states. But the distribution of such powers is mutually devised
and accepted.

Article 256-263 provide for Union control over states even in normal times through
following Ways:

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1.

Direction by the Union to the states

Delegation of Union functions to the states

2.

All- India services

Grants in Aids

3.

Direction by the union

Mutualy transfer of administrative powers

The normal structure of administrative powers remains that the executive powers of
state shall be exercised within the territory of state with respect to state list and on
the subjects related to concurrent list, executive powers shall be exercised by the
state and within states.

Direction by the Union to states:

Article 256 provides that the executive powers of the state shall be so exercised as
to ensure compliance with the laws made by the parliament and the executive
powers of the union executives shall also be extend to the giving of such directions
to states as it deem necessary. Apart from this, the union shall also have powers to
give direction to states regarding certain matters such as construction and
maintenance of the communication means, development of Hindi language, the
welfare of the Scheduled Tribes in the state, the protection of railways, etc.
Article 257 says that the States must exercise their executive powers in such a way
that it should not impede or prejudice the exercise of executive power of the Union
in the state. It further states that, upon failing which the centre may invoke Article
356.

Criticism of Article 256 and Article 257:

There have been long standing demands to amend or repeal these provisions. The
arguments against these provisions are premised on that these are repugnant upon the
true federal spirit. In no federal structure, constitution confers powers upon the centre
to give directions to states. It is also pointed out that these kinds of provisions were
unique to Indian Constitution and find mention nowhere in the Constitution of USA or
Australia.

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Delegation of Union functions to the states:

Under Article 258 the Parliament may, with the consent of states either
conditionally or unconditionally, confer some executive powers which fall in centres
executive realm. Moreover, constitutionally, under Clause 2 of this article Parliament
is also empowered to use states machinery for implementation of union laws.
Once the duties are imposed and powers are delegated, it would be duty of the state
officers to implement it, thus the Parliament can interfere in internal administration
also and that too without the consent of the states. This has been alleged by states
as encroachment by the parliament upon their autonomy.

If there is a provision of a constitutional body Finance Commission, whose main task is

to distribute resources between centre and states, then why Grants-in Aids? What are the
purposes of Grants in Aids?
Grants-in-Aid serve following two purposes
Firstly, it allows central government to exercise greater control over states as all
transfer under Grants in aids are conditional and it takes place only when the states
fulfil some conditions of the central government such as fiscal management,
environment protection, good governance, etc.
Secondly, It gives opportunities to states to receive more resources apart from
awarded resources through Finance Commission. It enables them to look after
various socio-economic concern of the state. Thus, if combined it creates a scope for
greater degree of co-ordination between centre and states.

Financial Relation between Centre and State:

Unlike legislative and administrative relation, financial relation has undergone most
significant transformation. It has evolved over a long period of time from a heavy
public sector dominated restrictive economy to a liberalized or more open economy
in post-reform period.
One of the major problems that arise in post reform period is growing imbalances
between functional responsibilities and financial resources.
The disequilibrium between proliferating function responsibilities of the states and
their own resources is corrected by Central transfers effected through following
three main channels :

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Statutory transfers through the Finance
Commission
Plan transfer through the planning Commission
Discreationary transfers of Centrally Sponsored
Schemes

But one of the greatest problems of financial relations between centre and states is
that the constitution has neither indicated the share of states in the divisible taxes
nor prescribed any principle for the distribution of share among states.

Article 280 provides for establishing of Finance Commission for distribution of

resources between centre and states but actual determination of resources by
Finance Commission is diluted as the final decision on Finance commission is
generally taken by the central government. Finance Commission is a unique feature
of the constitution of India and finds no mention in any parallel constitution in the
world.

There are two big controversies associated over the sharing of the taxes:
1. Distribution of Corporation Tax: Prior to 1959, the company tax exclusively
belonged to the state government but in 1959 the definition of Corporation tax had
been changed. The new definition said that the income tax paid by the companies is
Corporation tax. As an offshoot of this definitional change, company tax ceased to
be sharable with the states as per provisions of article 270. Regarding this the 10 th
Finance Commission recommend that the permissibly sharable tax can be shared
with reasonable amendment in the constitution
2. Surcharge on Income Tax: Article 271 provides for the power of imposing surcharge
exclusively belonged to the Central government. Regarding this, the states have long
standing demand of including Surcharge on Income tax on sharable pool of taxes.
However, this demand has not been accepted neither by any of Finance
Commissions and nor by central government.

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Transfer of Resources via Planning Commission:

Until recently before disbanding of Planning Commission, major chunk of

resources were used to be transferred through the Planning Commission route. It
had serious repercussions over entire Centre-state financial relation.
Article 282 empowers central government or a state to make any grant
voluntarily.
These grants are essentially different from those of which are made under Article
275.
The devolution of discretionary funds by the Planning commission comes directly
under this article

TO BE CONTINUED...in Programme 2 and 3 of ILP 2016

Directions for Mains Question:

Does AIS violate principle of federalism?
No:

AIS provide unity and solidarity of the country by combating parochial attitudes, as
they are less influenced by local & regional influences.

Integrity, cohesion , efficiency and co-ordination because they are rotated between
the Centre and the States, enabling the Centre govt. to be in touch with the Ground
realities of the states

Wider outlook, High calibre exhibited by the AIS, competition- so the best are
recruited.

Strategic or key posts were policy decisions are involved are held by AIS personnel
and they can give independent advice to the State ministers, which the officers of
the State hesitate to do. National integration, as AIS belong to different states.

Uniformity in administration, which becomes necessary in the interest of the nation.

(Sarkaria commission too had supported AIS as it was important for the unity of the country)

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Yes:

Especially with IPS, since L&O is a state subject

Disciplinary actions are taken by centre, hence less control over AIS personnel by the
State govts (encroaches states autonomy).

Creates hostility b/w the AIS and state civil servants as key posts are held by the AIS
personnel, less co-ordination or cooperation.

With increase in AIS personnel being sent to the State Govt, reduces the
employment opportunity for Sons of the Soil.

Larger expenditure from the states exchequer.

(Rajamannar committee had recommended for abolition of AIS as it encroached the

autonomy of the States)
Conclusion: AIS provide a valuable link b/w the centre and the State and help in solving dayday issues with much comparative ease. And also since 33% are promoted from the State
govt to AIS, it helps in facilitating liaison b/w the centre and the States and with national
interest in mind AIS should be continued.

Recent developments in Union-State relations in India (or) The emerging conflict and
cooperation in the Indian Federalism.
Recent developments & emerging conflicts:
Take any 2 or 3 issues and explain the administrative, legislative and financial implications of
Centre and the Sate Govt.
Telangana issue
Goods & Service Tax (GST) issue
National Counter terrorism Centre (NCTC)
FDI in retail
Tamil Nadu- India-SriLanka issue (regional parties in the matter of foreign policy)
Land boundary agreement & Teesta river water agreement
Communal violence Bill
AFSPA, paramilitary forces

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Cooperation:
NDC with the rise of coalition politics & regional parties, states have more say.
Irrigation projects Damodar River Valley project

The successful functioning of the Indian federal system depends not only the harmonious
relations and close cooperation between the Centre and the States but also between the
states inter se. What are the constitutional and statutory provisions provided with regard
inter-state comity?
Inter-state comity (harmony)
Constitutional provisions:

Article 262 Interstate water disputes Parliament by law can provide for adjudication
of any dispute or complaint with respect to the use, distribution and control of waters of
any inter-state river and river valley. Inter-State water Disputes Act empowers central
govt to set up an ad hoc tribunal for the adjudication of dispute b/w 2 or more states.
Article 263- Inter State Council coordination b/w the states and between Centre and
states.- deliberations, discussions on subject of common interest.
Public Acts, records and Judicial Proceedings:
Full faith and credit clause throughout the territory of India to public acts (legislative
and executive acts), records and judicial proceedings of the Centre and every state.
Final judgements and orders of civil courts in any part of India are capable of execution
anywhere within India (but only w.r.t civil judgements and not to criminal judgements)
Inter-state trade and commerce commission trade throughout the territory of India
shall be free.
NDC

Statutory provisions:

Zonal Councils aim at promoting cooperation & coordination b/w states, union
territories and the Centre. Discuss matters regarding to economic and social planning,
linguistic minorities, border disputes, inter-state transport. To achieve emotional
integration, arresting growth of regionalism.
National Integration Council was setup in 1986 to deal with welfare measures of the
minorities on an All-India basis.

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Questions & Directions to approach:

By this way, not only the relevant content is covered through the questions but also
helps in analysing the issue from multi-dimensional view-point.
Helps in understanding the expectations of UPSC and raising ones standards
accordingly.
It also helps in understanding the requirement of the question and knowing what to
write and how to write (Basically in your Answer writing).

1. Article 356 has become one of the most controversial and most criticised provisions of
the Constitution. Comment
Basic Framework:
What is Presidents rule?
When can it be applied?
What happens or what changes does it bringin Centre-State Relationship when
Article 356 comes into being?
How article 356 is used as a political ploy to settle political scores?
How can the misuse of Article 356 be curtailed? Steps taken by the Government in
this regard.
Balanced Conclusion

Note: This is for your understanding. Its not a Model answer. So world limit is not taken
care of. Its done to let you understand the basic content, structure and approach
Presidents rule:
Article 356 / Presidents rule / State Emergency / Constitutional Emergency is an
emergency provision which empowers the President to take over the administration of a
State or the States of the Indian Union if he/she is satisfied that there is a breakdown of
the constitutional machinery of a State or States.
According to Article 355, it is the duty of the Centre to ensure that the government of
every state is carried on in accordance with the provisions of the Constitution.When
there is a failure of constitutional machinery in a state government article 356 comes into
being and Presidents rule is applied.

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Article 356 can be applied on two grounds:

If the state cannot be carried in accordance to the provisions of the Constitution.

Whenever a state fails to comply with or give effect to any direction from the
Centre, presidents rule can be applied.

Consequences of Presidents rule:

The State Governor, on behalf of the President carries on the state administration
with the help of the chief secretary of the state or advisors appointed by the
President.
The President either suspends or dissolves the State Legislative Assembly and the
Parliament passes the state legislative bills and the state budget.
The President can promulgate ordinance, can authorize expenditure from State
Consolidated fund, when the Parliament is not in session.

Article 356 has been misused many a times:

It has been used in an arbitrary manner for political or personal reasons.

Presidents rule has so far been imposed about more than 123 times (since 19512010) in the States has varied from 10 days in Bihar to 1192 times in Pondicherry.
Examples:
After internal emergency, in 1977 Janata Government imposed Presidents rule in
9 states (where Congress party was in power)on the ground that assemblies in
those states no longer represented the wishes of the electorate. When the
Congress party came to power in 1980, it did the same in 9 states on the same
ground.
In 1992, Congress imposed Article 356 on BJP states (Madhya Pradesh&Rajasthan)
on the ground that the states were not implementing the ban imposed by the
Centre on religious organisations.
Also, since the Governor is appointed by the President, who holds office under
the pleasure of the President, chances of misusing the article 356 arises.

Recommendations to prevent the misuse of Article 356:

The Sarkaria Commission Report as well as the Report by the National Commission to
Review the Working of the Constitution (NCRWC) have elaborately dealt with the
problems arising in implementation of Article 356, the S.R. Bommai judgment and have
recommended various measures to utilise Article 356 in preserving the balance between
the Union and the States.
In the S. R. Bommai case 1994, the Supreme Court's judgment laid down the following
guidelines:

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Article 356 should be used very sparingly, in extreme cases, as a measure of last
resort, when all available alternatives fail to prevent or rectify a breakdown of
constitutional machinery in the State
The power conferred by Article 356 upon the President is a conditioned power. It is
not an absolute power. The Governors report is a pre-condition and the satisfaction
must be formed on relevant material and a warning should be issued to the errant
State before taking recourse to Article 356.
The Legislative Assembly can be dissolved only when the Proclamation for
emergency is approved by both Houses of Parliament. Until such approval, the
President can only suspend the Legislative Assembly.
The Proclamation under Article 356 is not immune from judicial review.
Whether the Ministry in a State has lost the confidence of the Legislative Assembly
or not, should be decided only on the floor of the Assembly. And so long as the
Ministry enjoys the confidence of the House, emergency cannot be proclaimed. Only
where a Chief Minister of the Ministry refuses to resign after his Ministry is defeated
on a motion of no-confidence, should the Governor dismiss the State Government.
Allegations of maladministration or corruption cannot be the criteria, however
defeat on a major policy issue can be.
According to Punchi Commission "localised emergency" would ensure that the State
Government can continue to function and the Legislative Assembly would not have
to be dissolved and would also provide a mechanism by which the response of the
Central Government would be issue specific and the Central Government would
have to exit the moment the situation is back under control. Such a provision would
also reduce the temptation of the Centre to misuse the emergency provisions in
Article 352 and Article 356 as the State Government would continue to function in
other parts of the State and the imposition of a local emergency could only be done
when there exists a crisis situation decided on objective standards. Therefore, the
possibility of gaining political mileage through misuse is significantly reduced.

Conclusion:
It has been emphasised by the committees that Article 356 should not be deleted
altogether. However, the states should be given an opportunity to explain its position
and redress the situation and only then the Presidents rule should be used as a last
resort. Centre must not rush to invoke article 356 in very first instance. With media
activism, public awareness and President using his powers effectively, Article 356 has
been used sparingly and has helped in furthering the concept of cooperative federalism.

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