Centre-State Relations in India
Centre-State relations in India refer to the division of powers and responsibilities between the Union (central) government and the state governments, as outlined in the Indian Constitution. India follows a federal system, where power is shared between the Centre and the states, but it has a strong unitary bias, making it unique compared to other federal systems like that of the United States. The relationship between the Centre and the states is vital for maintaining a balance of power, ensuring effective governance, and addressing regional needs while upholding national unity.
The Centre-State relations in India can be categorized into three broad areas: legislative, administrative, and financial relations.
1. Legislative Relations
The division of legislative powers between the Centre and the states is defined in Schedule VII of the Indian Constitution, which includes three lists: the Union List, State List, and Concurrent List.
- Union List: This list contains subjects of national importance, such as defense, foreign affairs, atomic energy, railways, and currency. Only the Parliament has the authority to legislate on these subjects.
- State List: This list includes subjects of regional and local importance, such as police, public health, agriculture, and local governments. States have exclusive authority to legislate on these matters. However, during a national emergency, the Parliament can also legislate on State List subjects.
- Concurrent List: This list contains subjects on which both the Parliament and state legislatures can legislate, such as criminal law, marriage and divorce, bankruptcy, and education. In case of a conflict between central and state laws on any concurrent subject, the central law prevails.
In extraordinary situations, such as during a national emergency, the balance of power can tilt in favor of the Centre. Under Article 356 (President’s Rule), the Union government can assume control of a state's legislative and executive functions if the state government is unable to function according to constitutional provisions.
2. Administrative Relations
The Indian Constitution provides for cooperation between the Centre and states in administrative matters, but it also emphasizes the dominance of the Centre in several areas:
- Executive Powers: The Union government has the power to give directions to the states to ensure compliance with laws made by Parliament. For example, the Centre can direct states to implement laws related to defense or communications. The Centre also plays a dominant role in times of national emergency, when it can assume direct control of state administration under Article 352.
- Intergovernmental Coordination: Several mechanisms exist to facilitate cooperation and coordination between the Centre and states. The Inter-State Council, established under Article 263, serves as a forum for discussion on administrative and legislative matters affecting both levels of government. The National Development Council and NITI Aayog are other platforms for the Centre and states to discuss policies and plan developmental initiatives.
- All-India Services: The Indian Administrative Service (IAS) and other All-India Services are managed jointly by the Centre and the states. Officers of these services work in both central and state governments, which ensures a link between the two levels of administration.
Despite these provisions, tensions between the Centre and the states often arise. States sometimes allege that the Centre oversteps its authority by giving excessive directives, thus undermining state autonomy.
3. Financial Relations
The financial relationship between the Centre and states is crucial for ensuring fiscal federalism. The Constitution provides mechanisms for sharing revenues between the two levels of government.
- Taxation Powers: The Centre and states have separate powers to levy taxes. Taxes on income (except agricultural income), customs duties, and excise duties fall under the Union’s jurisdiction, while taxes on land, agriculture, and sales of goods are under the states' authority. However, the Goods and Services Tax (GST) has introduced a shared system of taxation, where both the Centre and the states levy taxes on goods and services through a harmonized system.
- Finance Commission: The Finance Commission, constituted every five years under Article 280, recommends how the central revenue should be distributed among states. This ensures a fair and equitable distribution of financial resources between the Centre and the states based on their needs and performance.
- Grants-in-aid: The Centre provides grants-in-aid to states, especially those with lower revenue-generating capacities, to assist in the development of underprivileged regions and ensure the fulfillment of constitutional mandates like education, health, and infrastructure development.
Financial relations, however, often become contentious, with states frequently demanding a greater share of central taxes and more autonomy in spending. In response, the 14th and 15th Finance Commissions increased the states' share of central taxes to 42% and 41%, respectively, addressing some of these concerns.
Conclusion
The Centre-State relations in India are characterized by a mix of federal and unitary features, where the Constitution attempts to balance regional autonomy with national integrity. While legislative and financial powers are distributed between the Centre and states, the unitary tilt becomes evident during emergencies or financial dependence on the Centre. Over the years, Centre-State relations have evolved, with various commissions, like the Sarkaria Commission and Punchhi Commission, recommending ways to make the federal structure more balanced. Effective Centre-State cooperation remains crucial for India's progress, governance, and addressing regional aspirations.
Subscribe on YouTube - NotesWorld
For PDF copy of Solved Assignment
Any University Assignment Solution
.webp)
