CENTRE-STATE RELATIONS

Articles 245 to 263 of Part XI and Articles 268 to 293 of Part XII describe three types of Centre-State relations – Legislative, Administrative and Financial.

LEGISLATIVE RELATIONS

• Articles 245 to 255 describe legislative relations.
• Article 245(1): Parliament may make laws for whole or any part of India; State Legislatures may make laws for whole or any part of the state.
• Article 245(2): No parliamentary law becomes invalid due to extra-territorial operation.
• Article 246: Parliament has exclusive power over Union List and Concurrent List; States legislate on State List.
• Article 248: Parliament has exclusive residuary power.
• Article 250: During National Emergency, Parliament becomes empowered to legislate on State List for entire or part of India.
• Rajya Sabha Resolution: If Rajya Sabha, by 2/3rd present and voting, passes a resolution that Parliament should legislate on a State List matter (including GST), Parliament becomes competent to do so.
• President’s Rule: When imposed, Parliament legislates on State List for that state; such laws continue even after President’s Rule ends.

ADMINISTRATIVE RELATIONS

• Articles 256 to 263 deal with administrative relations.
• Article 256: State’s executive power must ensure compliance with parliamentary laws; Union can issue directions.
• Article 257(1): State’s executive power must not impede Union’s executive power; Union may issue necessary directions.
• Article 258(2): Parliament may confer powers and impose duties on states even on matters where state has no legislative competence.
• Article 261(3): Civil court judgments are executable anywhere in India.
• Article 262: Parliament may legislate on inter-state water disputes; can bar jurisdiction of courts including Supreme Court.
• Article 312: Parliament may create All-India Services (IAS, IPS etc.) based on Rajya Sabha resolution.

FINANCIAL RELATIONS

• Articles 268 to 293 deal with financial relations.
• Article 268: Duties levied by Union but collected and appropriated by states.
• Article 269: Taxes levied and collected by Union but assigned to states.
• Article 269A: GST on inter-state trade collected by Union but distributed.
• Article 270: Taxes levied and shared between Union and states.
• Article 271: Parliament may levy surcharge for Union purposes.

80th Amendment Act 2000 & 101st Amendment Act 2016 strengthened cooperative fiscal arrangements including GST regime.

GRANTS-IN-AID

• Statutory Grants (Article 275):
• Given to states on Finance Commission recommendation; charged on Consolidated Fund of India.

Discretionary Grants (Article 282):

• Both Centre and states may give grants for public purpose even beyond legislative competence.

TRENDS IN CENTRE-STATE RELATIONS

• Issues causing Centre-State tensions:
• Governor’s appointment and removal
• Partisan behaviour of Governors
• Misuse of President’s Rule
• Central forces deployment in states
• Reservation of state bills for President
• Discrimination in financial allocations
• Role of Planning Commission/NITI Aayog
• Control over All-India Services
• Use of national media for political purposes
• Enquiry commissions against CMs
• Encroachment over State List

ADMINISTRATIVE REFORMS COMMISSION (ARC)
ARC (1966) chaired by Morarji Desai, later K. Hanumanthayya; Setalvad Committee report (1969) guided recommendations.

Major ARC Recommendations:

• Establish Inter-State Council under Article 263.
• Appoint non-partisan, experienced individuals as Governors.
• Greater delegation of powers to states.
• More financial resources to reduce state dependence on Centre.
• Central armed forces should be deployed in states when required.
• Central government did not implement ARC recommendations fully.
   

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Subject: Polity

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