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08 August 2022 – The Indian Express

Centre State Relations

All legislative, executive, and financial powers are divided between the centre and the states according to the Indian constitution.
Maximum cooperation and coordination between the federal government and the states are required for the federal system to work properly. The constitution contains many clauses to ensure this as a result.

There are three types of relationships between the centre and the states:

Legislative relations
Administrative relations
Financial Relations

Legislative relations:

Territorial Coverage of Central and State Law:

The ability to pass legislation that covers all or a portion of India’s territory belongs to Parliament (territory includes union, state, UT)
Laws can be passed by the state legislature that are applicable to the entire state or only a portion of it. Unless there is a sufficient connection between the state and the object, state laws are not applicable outside of the state.
The only body with the power to pass “extraterritorial” legislation is Parliament.
Examples of circumstances where parliamentary laws don’t apply
The President has the authority to enact rules that have the same force and effect as laws passed by parliament for the Andaman and Nicobar Islands, Daman and Diu, Dadra and Nagar Haveli, and Lakshadweep.
An act of parliament may be made to apply with specific modifications and exceptions to a specified state area by the governor, or it may be made to apply to all of the state.
The Governor of Assam may also instruct an ac of Parliament to not apply or to apply with particular adjustments. The same authority belongs to the President of Meghalaya, Tripura, and Mizoram.

Subject Distribution In The Legislative Body:

The Union List, State List, and Concurrent List are the three divisions established by the constitution.
Parliament is the exclusive authority when it comes to the union list.
In most cases, the state legislature alone has the power to pass legislation pertaining to the things on the state list.
The state and the federal governments can both pass laws on the topics mentioned in the concurrent list.
The ability to pass laws with a recurring theme rests with Parliament.
The concurrent list is given precedence over the state list, and the union list is given precedence over the state list.
If there is a conflict between federal law and state law on a matter in the concurrent list, federal law will prevail. On the other hand, the state legislation will take precedence in the state if it has been reserved for the president’s consideration and has gained his approval. However, by passing a law on the matter, parliament has the authority to invalidate state law.

Legislative Regulation in the State Sector:

The Constitution permits Parliament to enact laws on any topic included in the state list under the following five exceptional circumstances:
If the Rajya Sabha approves a resolution with the support of two-thirds of the members present and voting, it will provide parliament the authority to enact legislation on a state list issue that is best for the nation. Such a resolution lasts for a full year. You can keep a resolution like this for as long as you desire, but not for more than a year. The laws passed in accordance with the resolution cease to be in force six months after it was adopted. In the event of a disagreement between state and union legislation, the latter prevails. A state may, however, pass legislation on the same issue.
The Parliament may pass laws on any matter covered by the state list when a declaration of a national emergency is in force. The legislation passed under this are only valid for six months before they expire. State law may also enact legislation on the matter, but in the event of a conflict, union law will take precedence.
When a state asks Parliament to act on a list of issues by passing a resolution to that effect, Parliament is given the power to do so. The state forfeits all rights there once this resolution is approved.
Parliament may enact laws on the subjects included in the state list in order to carry out international agreements.
Parliament now has the power to pass legislation addressing a state issue while the President’s rule is in force. The legislation passed during this period of time will remain in force even after the president’s tenure has ended. On the other hand, the state has the right to enact laws in the future to change or repeal the law as it sees proper.

The Centre’s Influence on State Law:

According to the Constitution, the federal government is authorised to exercise the following influence over state legislative affairs:
Specific laws established by the state legislature may be set aside by the governor for presidential consideration. They are entirely under the president’s power.
Bills on specified subjects listed in the state list can only be filed in the state legislature with the President’s prior consent. For instance, interstate trade and commerce.
The president may ask a state to lay aside money bills and other financial bills for his consideration in the case of a financial emergency.

Administrative Relations:

The distribution of legislative authority has resulted in a shared executive branch between the federal government and the states.
The center’s power encompasses the entire nation when it comes to matters over which it has exclusive jurisdiction (union list), as well as when it exercises any rights, jurisdiction, or authority granted to it by a treaty or agreement.
The subjects listed in the state list fall under the state’s purview.
The states have the executive authority in matters involving the concurrent list.

State responsibilities to the centre:

The state’s executive branch must act in a way that ensures the laws established by Parliament are upheld.
and not to hinder or impair the exercise of an executive power by a state.
The use of Article 356 in the event that these instructions are not followed makes them forceful (Article 365).
The following circumstances are where the Centre may provide advice to states:
Building and maintaining communication systems that the government has deemed crucial for the nation or the military.
Actions to be taken to guarantee the state’s railways are safe
provision of enough resources for pupils from linguistic minority groups to receive elementary school instruction in their home tongue
the creation and execution of detailed programmes for the ST’s welfare in the various states.
The coercive sanction of Article 365 underlying central instructions is also applicable in this case.

Mutual function delegation:

To decrease rigidity and prevent a deadlock, the constitution permits the delegation of executive authority between governments.
With the state government’s approval, the president may delegate the union’s executive functions to it.
The governor may delegate the executive responsibilities of the state to the union with the approval of the federal government.
This agreement to share authority may be either conditional or unconditional.
The constitution also permits the state to provide the union executive authority without the state’s consent. However, such delegations are made by Parliament rather than the President. The executive authority of a state, however, cannot be transferred in the same manner.
The cooperation of the federal government and the states The following clauses have been added to ensure collaboration and coordination between the centre and the states.
Parliament has the authority to rule on any dispute or grievance involving the use, distribution, and management of any interstate river’s and river valleys’ water resources.
The President is able to establish an interstate council to look into and debate matters of relevance to both the federal government and the states.
All of India is required to provide full faith and credit to the public actions, records, and judicial proceedings of the federal government and each state.
In order to carry out the constitutional requirements relating to interstate trade, commerce, and intercourse, Parliament has the authority to designate the proper authorities.

All India Services:

In 1947, the colonial Indian Civil Service (ICS) and Indian Police (IP) were replaced by the Indian Administrative Service (IAS) and Indian Police Service (IPS).
As the third all-India service in the nation, the Indian Forest Service (IFS) was founded in 1966.
The Rajya Sabha must pass a resolution authorising the creation of an all-India service before Article 312 of the Indian Constitution can be invoked.
With the combination of these three services, a single service is created with uniform pay schedules, rights, and status.

All India Services’ importance:

help to keep the federal government and the states’ administrative standards high.
aid in ensuring that the administrative framework is consistent throughout the nation.
They enhance communication, collaboration, coordination, and cooperative action between the federal government and the states on issues of shared concern.

Public Service Commission:

The center-state relationships in this area are as follows:

The state public service commission’s chairman and members are chosen by the governor, but only the president has the authority to remove them.
The President appoints the chairman and members of the state public service commission in cases when two or more states request that Parliament establish a combined public service commission.
The President’s approval is required for UPSC to help the state public service commission at the governor’s request.
In order to create and implement joint recruiting plans for any services that require candidates with certain qualifications, the UPSC works with the states.

Integrated Judiciary:

An integrated judicial system has been formed in India despite its split polity.
Both federal and state laws must be enforced by this unified judicial system.
The Chief Justice of India, together with the governor of the state, and the President of India collaborate to appoint the justices of a high court. They may be transferred or removed at the President’s discretion.
Parliament has approved the creation of joint high courts for two or more states.

Financial Relation:

Distribution Of Taxing Authority:

Taxation of the items on the Union list is the sole responsibility of Parliament.
Taxation on the things included in the state list may only be done by the state legislature.
The items on the concurrent list are subject to taxation by both the state and the union.
The residuary power to tax belongs to the Parliament.
The constitution’s limitations on the state’s ability to tax its citizens
The power to tax occupations, trades, callings, and professions belongs to the state legislature. However, no one should receive more than Rs 2500 in total compensation each year.
A state may apply taxes on the purchase or selling of goods (other than a newspaper).

However, four things restrict the state’s capacity to impose a sales tax:

Sales and purchases made outside of the states are exempt from taxation.
Sales or purchases done during the import or export process are exempt from taxation.
No tax may be levied on a transaction or purchase made during interstate trade or commerce.
A tax imposed on goods sold or bought that the Parliament has determined are of particular importance to interstate trade and commerce is subject to the limitations and specifications set forth by the Parliament.
Electricity used by or sold to the centre, as well as electricity used in the building, upkeep, or operation of any railway by or sold to the railway company for the same purpose, are exempt from state taxes.
A state may charge a price for the water or electricity it sells to an interstate river authority that Parliament established to manage and develop the river. On the other hand, a law that receives the approval of the President may enact such an imposition.

How Tax Revenues Are Distributed:

Taxes are levied by the centre, but they are collected and used by the state (Article 268). The state’s consolidated fund receives the proceeds from this and holds them there. For instance, excise tax and stamp duty
While the states are in charge of collecting taxes, the federal government levies and collects them (article 269). One illustration would be taxes imposed on goods purchased or sold in interstate commerce that are not newspapers. The state’s consolidated fund receives the proceeds from this and holds them there.
Although the federal government imposes and collects taxes, they are divided between the federal government and the states (Article 270). This category includes all taxes, with the exception of the ones mentioned above, surcharges, and cess. Based on the proposal of the Finance Commission, the President determines how these taxes are allocated.
The tax and levies surcharges mentioned in Articles 269 and 270 may be enacted at any time by Parliament. Proceeds from the surcharge are only used for the centre.
State-imposed, gathered, and held-back taxes consist of: These are the taxes that fall under the purview of the states only. They are listed on the state list. agriculture income taxes, alcohol excise taxes, profession-specific taxes, ceilings, etc.

Important Advice Regarding Centre-State Relations:

Administrative Reform Commission:

The constitution’s Article 263 requires the creation of an interstate council.
appointment of governors with substantial expertise in public service and impartial viewpoints
The most power has been granted to states.
In order to reduce the states’ reliance on the federal government, more financial resources ought to be distributed to them.
federal armed troops being stationed in states at their request or on their own initiative.
The Tamil Nadu government established the Rajamannar committee, which made various proposals to address the imbalance of power between the centre and the state.
Punjab made similar suggestions in the Anandpur Sahib Resolution to address these inequalities, while West Bengal made comparable suggestions in a document.
To evaluate the state of center-state ties, the government formed the Sarkaria Commission in 1983 and the Punchhi Commission in 2007.

Recommendation of the Sarkaria Commission:

Making an inter-State Council permanent Article 356 should only be used as needed.
The all-India service institution needs to be strengthened.
Remaining authority should belong to the parliament.
The states should be informed of the President’s grounds for his or her vetoes of state legislation.
Without the consent of the states, the Center ought to be able to use its military forces. However, it would be ideal if the states were consulted.
The constitution ought to specify how the chief minister would be consulted when the state government is chosen.
It is appropriate to let governors serve out their full five-year tenure.
It is necessary to fill the job of Commissioner for Linguistic Minorities.

The Punchhi Commission:

The process of impeachment is used to remove governors after a five-year term.
The Union should exercise extreme prudence when asserting Parliamentary precedence in matters given to the states.
It specified a number of criteria to be taken into account when choosing governors:
He ought to be well-known in some industries.
He should not be a state resident.
He ought to be a neutral figure who stays out of regional politics.
He shouldn’t have recently become involved in politics.
The term limit for the government should be set at five years.
Governors could be subject to the same impeachment process as the president.
The Chief Minister should be required to show his majority on the House floor, and the Governor should impose a time limit.
Consider the Bommai case rules when making decisions affecting the President’s rule.
To encourage center-state cooperation, the Inter-State Council should be utilised more frequently.