Centre-State Relations
- Constitution being Federal in nature divides all Powers (Legislative, Executive, Financial) between Centre and State
- No division of Judicial Power
Legislative Relations
- Article 245 to 255 in Part 11
- Territorial Extent of Centre & State Legislation
- Parliament can make laws for whole or any Part of India
- Law made by the state are not applicable outside state
- Law made by the Parliament are also applicable to Indian citizens outside India
- Restrictions
- President can make regulations for the peace and good governance of 4 UT : A&N Islands, Lakshadweep, Dadra & Nagar Haveli, Daman & Diu
- Governor is empowered to direct that an act of parliament is not applicable to the schedule areas in the state
- Governor of Assam may likewise direct that act of Parliament doesn’t apply to the tribal areas
- Distribution of Legislative Subjects
- Union List (100)
- State List (61)
- Concurrent List (52)
- Laws Prevailing
- UNION vs state
- UNION vs concurrent
- CONCURRENT vs state
- But If President reserves the Bill of State, State law will prevail
- Parliamentary Legislation in State Field
- Distribution of Legislation is to be maintained in normal times, in abnormal times the schemes of Distribution is either modified or suspended
- When Rajya Sabha passes a resolution
- When Rajya Sabha declares that it is necessary in the National Interest that Parliament should make law on the matter in the State list then Parliament gets the Power
- Resolution must be supported by 2/3rd of Present and Voting (Special Majority as per Article 249)
- Any number of times extended, Max : 1 year
- During National Emergency
- Parliament acquires the power to legislate with respect to matters in the State list while the proclamation of National Emergency is in operation
- Laws becomes inoperative on the expiration of 6 months after the emergency has ceased to operate
- When State makes a request
- When 2 or more state pass a resolution requesting the Parliament to make laws on State List (only for those states)
- Such law can be amended or repealed only by the Parliament and not by State Legislature
- To implement International Agreement
- The Parliament can make laws on any matter in the State list for implementing International treaties
- During Presidential Rule
- Parliament is empowered to make laws on the State list during Presidential rule
- Law continues to operate even after the Presidential rule
- Such law can be repealed, altered or reenacted by the State Legislature
- Centre Control State Legislature
- Governor can reserve certain type of bill passed by the State Legislature for consideration of President
- Bills on certain matters in State list can be introduced only with the prior permission of President
- President can direct the state to reserve money bill and other financial bill passed by State Legislature during Financial emergency
Administrative Relations
- Article 256 to 263 in Part 11
- Distribution of Executive Powers
- Union List and Treaties : Centre
- State List : State
- Obligation of States and Centre
- The Constitution has placed some restriction on Executive power of State in such a way
- As to ensure compliance with the laws made by the Parliament and any existing law which apply in State
- As not to impede or prejudice the exercise of Executive power of the Centre in the State
- If state fails to comply with Centre then President Rule (Article 365)
- Centre’s direction to the State
- Centre is empowered to give direction to state in matters
- Construction and Maintenance of means of communication
- Measure to protect Railway within State
- Adequate facility of instruction in mother tongue at primary stage of education belonging to linguistic minority
- Drawing up and execution of certain schemes for ST
- Cooperation between Centre and State
- Parliament can provide for adjudication of any dispute or complaint with respect to use, distribution and control of water of any Inter-State river
- President can establish Inter-State council
- Full faith and credit is to be given throughout the territory of India to public acts, records and judicial proceedings of centre
- Parliament can appoint authority to carry out Inter-State trade, commerce
- All India Services
- Centre and State have separate public services
- Services
- IAS
- IPS
- IFS
- Brought in 1966
- These occupy top position in both Centre and State, but recruited and trained by centre
- Article 312 authorise Parliament to create new All India Service
- Initiated by Rajya Sabha
- Public Service Commission
- Chairman of SPSC appointed by Governor but removed by President
- Parliament can establish Joint SPSC, Chairman by President
- UPSC can serve the need of the state
- UPSC assist the state in framing and operating schemes of any service if special qualification is required
- Integrated Judicial System
- No Dual Judicial System
- Subordinate Court < High Court < Supreme Court
- Judges of HC appointed by President
- Parliament can establish common HC for 2 or more states
- Relation during Emergency
- National Emergency
- Centre gets complete control over state, not suspended
- Presidential Rule
- President gets control
- Financial Emergency
- Centre gets control over Financial matters of the State
- Other Provisions
- Which enable centre to exercise control over the State administration
- Article 355 impose 2 duties on centre
- To protect every state against External aggression and Internal disturbance
- Government in every State is carried out according to the Constitution
- Governor is appointed by President, during the pleasure of President and Governor acts as an agent of the centre
- State Election Commissioner though appointed by Governor can be removed by President
Financial Relations
- Article 268 to 293 in Part 12
- Allocation of Taxing Power
- Parliament have exclusive power to levy taxes on Union list (15)
- State have exclusive power to levy taxes on State list (20)
- Both Centre and State have exclusive power to levy taxes on Concurrent list (3)
- Restriction on State
- State can impose on Profession, trades but total amount should not exceed 2500 per annum
- No tax can be imposed on sale of goods outside state, import and export, inter-state, sale and purchase of goods by Parliament
- State legislature can impose tax on electricity but not used by Centre
- Distribution of Tax revenue
- 80th CAA, 2000 and 86th CAA, 2003 brought changes in revenue system
- Present position is as follows
- Taxes levied by the Centre but collected and appropriated by States (Article 268)
- Stamp duties, Cheques, Promissory notes, Policies of insurance, Transfer of Shares
- Excise duties on medicinal and toilet preparations containing alcohol and narcotics
- Service taxes levied by Centre but collected and appropriated by Centre and State (Article 268A)
- The Principle of there collection and appropriation are formulated by Parliament
- Taxes levied and collected by Centre but Assigned to State (Article 269)
- Sale or Purchase of goods in course of Interstate trade (other than newspaper)
- Taxes on consignment of goods in course of Interstate trade
- Taxes levied and collected by Centre but distributed between Centre and State (Article 270)
- All taxes and duties except
- Duties and Taxes referred to in Article 268, 268A, 269
- Surcharges on taxes and duties referred in Article 271
- Any cess levied for specific purpose
- Surcharge on certain taxes and duties for purpose of Centre (Article 271)
- Parliament can levy surcharge at any time on taxes and duties mentioned in Article 269, 270
- States have no share
- Taxes levied and collected and retained by the State
- Enumerated in State list
- Land revenue, Agriculture, Tax on land and buildings, Gambling, Entertainment, Alcohol, Tools, Stamp duties, Sales tax, etc
- Distribution of Non-Tax revenue
- Centre
- Post and Telegraphs
- Banking
- Railways
- Broadcasting
- Currency
- Central Public sector enterprises
- Escheat and Lapse
- States
- Irrigation
- Forest
- Fisheries
- State Public sector enterprises
- Escheat and Lapse
- Grant in Aid to States
- Statutory Grants
- Article 275 empowers Parliament to make grants to state in need
- Charged on Consolidated Fund of India
- Discretionary Grants
- Article 282 empowers Bothe Centre and State to make any grant for public purpose
- Centre is in no obligation to give grant
- Other
- Temporary period
- Export on jute
- Assam, Bihar, Orissa, West Bengal
- From Consolidated fund of India