CENTRE-STATES RELATIONS

CENTRE-STATES RELATIONS

the relation b/w CENTRE-STATES RELATIONS

LEGISLATIVE RELATIONS

Art 245: Extra-territorial legislation – available only to
centre
Art 246: Schedule VII
Art 248: Residuary Powers
Art 249: Parliament can make laws on State list in
national interest.

Art 250 – Parliament to make laws on State List
during National emergency
Art 252 – Parliament can legislate on matter of State
List if 2 or more states agree.
Art 253 – Parliament can make laws on State List
subjects to give effect to international treaties

Sarkaria Commission Recommendation

• Residuary tax powers should remain with Parliament; nontax residuary powers should be placed in Concurrent List.
• Union laws in Concurrent areas are enforced by States;
  coordination and consultation with States is essential for
  uniformity.
• Centre should legislate only essential aspects of Concurrent
  subjects, ensuring national uniformity while States handle
  details. Prior consultation with State Governments is
  necessary before introducing such legislation in Parliament.
• The Governor should act on bills within 1 month. The
  President should dispose bills referred to him within four
  months of its submission.

Punchhi Commission Recommendation

• For effective laws on Concurrent List subjects,
  broad Centre-State agreement is needed.
• Equal representation of states in RS
• Restore domicile qualification for RS
• The President should dispose bills referred to him
  within six months of its submission.

ADMINISTRATIVE RELATIONS

• Art 256:
  -States must exercise their executive power to comply
  with laws made by Parliament.
  -The Union can direct States to ensure this compliance.
• Art 257:
  -The Union can direct States to ensure their actions don’t
  hinder Union’s executive power.
  -This includes directions on national/military
  communication infrastructure and railway protection.
  -If such directions increase a State’s costs, the Union
  compensates the State
• Art 339(2)
• Art 347
• Art 350A

Art 339(2)

The executive power of the Union shall extend to the giving
of directions to a State as to the drawing up and execution
of schemes specified in the direction to be essential for the
welfare of the Scheduled Tribes in the State.

Art 347

On a demand being made in that behalf the President may,
if he is satisfied that a substantial proportion of the
population of a State desire the use of any language
spoken by them to be recognised by that State, direct that
such language shall also be officially recognised
throughout that State or any part thereof for such purpose
as he may specify.

Art 350A

It shall be the endeavour of every State and of every local
authority within the State to provide adequate facilities for
instruction in the mother-tongue at the primary stage of
education to children belonging to linguistic minority
groups; and the President may issue such directions to
any State as he considers necessary or proper for securing
the provision of such facilities.

Issues in Administrative Relationships

• Political Discord
• Implementation of Central Schemes
• Bureaucratic Coordination
• Emergency Powers Misuse
• Role of Governors

Coordinating Mechanisms

INTER STATE COUNCIL (Art 263)

• Set up in 1990
• Composition:
  qPM
  qCMs of all states
  q6 Union Minister including Home Minister
  qAdministrators for UTs
• The body has largely remained defunct and has met only 11 times.

BODIES OUTSIDE CONSTITUTION

• Zonal Council
• Northeastern Council

ZONAL COUNCIL

• Functions:
  -To prevent development of acute centre-state consciousness
  -To develop the habit of cooperative working
  -To make recommendation on C-S and S-S disputes
• Composition :
  -Chairman – HM
  -CMs of state + 2 other ministers from states
  -Admin of UTs
  -Vice Cm – CM by rotation (for 1 year)

North Eastern Council

• Statutory advisory body for regional planning; setup by
  NEC Act’71
• Members – Arunachal Pradesh, Assam, Manipur,
  Meghalaya, Mizoram, Nagaland, Tripura, Sikkim
• CMs + Governors of all 8 states – members
• Chairperson – nominated by President

Limitations on States’ powers to levy taxes

• Can’t levy tax on import-export.
• Can’t levy tax on inter-state trade.
• Art 276 – limit on professional tax
• Immunity of instrumentality (Art 285, 289)
• Art 287

FINANCE COMMISSION

Art 280
Qualification: FC Act’51

• Knowledge of public affairs – Chairperson
• Knowledge of finance and account of Government.
• Knowledge of economics.
• HC judge sitting/former/qualified to be one
• Experience in financial matter and administration.
  
  Functions
  It shall be the duty of the Commission to make
  recommendations to the President as to:
  (a) the distribution between the Union and the
  States of the net proceeds of taxes which are to
  be, or may be, divided between them under this
  Chapter and the allocation between the States
  of the respective shares of such proceeds;
  (b) the principles which should govern the grantsin-aid of the revenues of the States out of the
  Consolidated Fund of India;
  
  c) the measures needed to augment the
  Consolidated Fund of a State to supplement the
  resources of the Panchayats in the State on the
  basis of the recommendations made by the
  Finance Commission of the State;
  d) the measures needed to augment the
  Consolidated Fund of a State to supplement the
  resources of the Municipalities in the State on
  the basis of the recommendations made by the
  Finance Commission of the State;

Issues in Centre-States Financial Relations

• Borrowing from Centre
• Dependency on Central Grants
• Excessive central dominance over fiscal
  resources
• Pay commission Awards
• Most lucrative subjects of state list have
  been practically monopolized by centre.