Central State Relation - Legislative, Administrative and Financial
Federalism is the mixed or compound mode of government, combining a general government Leading examples of the federation or federal state include the United States, . as the Central Government), representing the Union of India, and the State misjon.info pdf. (i) The residuary powers under the Indian Constitution are assigned to the Union and not to the States. The relations between centre and state are divides as. Module Centre- State Relations in India. Key Words: Centre, committee, constitution, council, federalism, State. Objectives: • To describe constitutional.
The pluralist character of India gives rise to many factors including regionalism. People from far northeast sometimes feel themselves at a formidable distance from New Delhi and people in southern part of the country with bigger states feel neglected having been within larger states.
The voice for the demand of more states has become more prominent in recent times, especially after the formation of Telangana in Recent demands like four-fold division of Uttar Pradesh and the creation of Gorkhaland from West Bengal are instances of aggressive regionalism that pose a threat to the federal structure of India.
The agitations for Gorkhaland, Bodoland, and KarbiAnglong have been revived. The more the number of states the more the centre will be held hostage to state parties on matters of national importance. Even growing regional powers may affect effective foreign policy as the federal government may bow to the will of an individual state. The powers of both the Central and State Governments are specifically enumerated in the Union list and State list respectively while powers mentioned in the Concurrent list are enjoyed by the two sets of governments.
The residuary powers are vested in the Central government. The general principle underlying the division of powers is that all matters of national importance, e.
Some matters which require the involvement of both the centre and states like criminal law, forest, economic and social planning are assigned in the Concurrent List.
However, in the case of conflict over the legislation on any of the subjects mentioned in the Concurrent List, the Centre supersedes the States.
Indian Federalism - 15 Issues that Challenge the Federal Structure of India - Clear IAS
Article reservation of State Bills by the Governor for consideration of the Presidentemergency provisions under Articleand and compulsory compliance by the States with the executive power of the Centre under Article and amount to centralisation of power which has been the major concern among the states. Centralisation is as such a threat to Indian federalism. Absence of Fiscal Federalism The Indian Constitution, while expressly vesting the Centre with greater powers of taxation, also provides for an institutional mechanism — the Finance Commission — to determine the share of the States in the Central tax revenues by way of correcting this imbalance.
While deciding the devolution of taxes and the provisions of grants the Finance Commission is required to address both the vertical imbalance between the Centre and the States and the horizontal imbalance between states. At present, about 40 percent of Central revenues tax and non-tax is transferred to the States, and this includes the grants they get from the Planning Commission and the Central Ministries.
Despite the enlargement of the shareable pool under the 80th Amendment which includes all central taxes, the revenue accruals of the Centre and the States have not seen any major changes. Asymmetrical sharing of revenue and resource crunch at the periphery results in uneven development across the country. The current Goods and Services Tax measure is feared by many states to be against fiscal federalism in India. It has amalgamated the various taxes into a single tax, procurement of which will then be divided among states in a prescribed ratio.
Many states in India demand for more financial autonomy in India. Unequal Representation of Units With a view to preventing the evil of predominant influence of larger units over smaller units in a federation, most federations in the world have resorted to some constitutional mechanism like an equal representation of units or states in the Second Chamber and ratification of all amendments to the Constitution by states.
In India, there is no such provision of an equal representation of states in the RajyaSabhathe Second Chamber and nor the states have any substantial say over the amendments done to the Constitution from time to time.
Centralized Amendment Power In a typical federation, the power of amendment to the Federal Constitution lies on a shared basis between the federation and its units.
In India, the power of constitutional amendment lies with the Centre under Article and other provisions. Although ratification of half of the states is sought for in some limited areas, the states in the Indian Union have virtually no power in this critical area of governance. The Union has been made indestructible with a view to protecting unity and integrity in a country like India. However, this typical Indian arrangement checks the growing demand for secession from the Indian Union.
Even if it appears anti-federal in content, it has proved a blessing in disguise for if states would have given plenary power in deciding their geographical territory, there would have been much chaos and impasses leading to serious law and order problems in the country. All major federal democracies have in their Constitutions the provision that a state cannot be divided or merged with another state without its prior consent.
This is the essence of federalism.
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However, the power of making, remaking states lies with the Union Parliament. Our nation-builders were wise in drafting the Constitution to suit our requirements. While prior consent of the state was not necessary under the Constitution, in practice every state has been formed with prior consent, in most cases after a detailed, impartial examination by an independent commission. However, in certain cases, states concerned are often being ignored by the Union Government in a matter of division of their geographical territory.
The recent formation of the State of Telangana is a case in point. In the sensitive matters like redrawing the territory of a state in India the views of concerned states should be given due weightage by the Centre.
Any arbitrary decision of the Centre without the consent of the State and a negotiated settlement in this regard will effectively convert states into municipalities, and India into a unitary state. Neither the Constitution-makers nor nation-builders intended such an outcome.
Office of the governor The office of the Governor for each state in India has been a sensitive issue as it sometimes poses a threat to the federal character of Indian Union. The abuse of the power under Article by the Central Government is replete in the political history of the country. This has resulted in cementing of centralized forces and disaffection of constituent states towards the federal character of the Indian Polity.
Single Constitution and Citizenship Unlike the Constitution of the USA, the Constitution of India lays down the constitution for the States as well and no state except Jammu and Kashmir has right to decide its own constitution. The Indian Constitution, unlike the other federal constitutions of the world, introduces single citizenship.
Integrated Services The integrated judiciary is a typical feature of Indian federation.
Political integration of India
Unlike typical federations, in India Supreme Court is the apex court and all other courts are subordinate to it. Also, the machinery for election, accounts, and audit in India is integrated. The All Indian Services and central services are also considered by many states and critics as anti-federal.
However, considering the nature and scope of administration in India, such services are essential as they impart all India character to governance. These services are meant for the administration of the affairs of the Union Government.
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- Federalism in India
Centralised Planning Although economic and social planning is found in the Concurrent List of the Seventh Schedule to the Constitution, the Union Government enjoys unbridled authority over national and regional planning in India. The States only fill the blank spaces meant for in the text for planning. There is no special planning commission for the states in India.
It also adds to the misery of states and poses smooth functioning of federal spirit across the country. Language Conflicts Diversity in languages in India sometimes causes a blow the federal spirit of the Constitution. There are 22 languages constitutionally approved in India.
Besides, hundreds of dialects are spoken across the country. Trouble arises when the strongest unit of the federation attempts to force a particular language on others. The tussle for official language in India is still a burning issue. Issue of Religion India is a fine example of religious heterogeneity that sometimes gives rise to turmoil to weaken the federation. But the religious process need not be always divisive.
So long as there is a reasonable tolerance on the part of the people and a genuine secular policy on the part of the government, religion may not cause imbalances in a federation. Economic Incompatibilities of the units Differences economic standards and relative economic and fiscal incompatibilities among the constituent states also pose a threat to a federation.
The forces of imbalances in the field are demands for economic planning and development and for regional economic equality and financial autonomy of states. Demand for a financial equality of a region creates problems in a federation. In India, some states are declared as poor and on the principle of equalization, are getting grants-in-aid. But the dilemma in a federation emerges that if the principle of equalization is adhered to, the national income and the total income growth will suffer.
Again, if much attention is paid to economic development, equalization of all units cannot be attained. Physical Environment Physical environment may also create hurdles for a federation by affecting communication.
A federation in which the lines of communication are long and difficult has to face the difficulty of keeping in touch with all the units. It is easy for creating misunderstanding and conflict and perhaps this was one of the important causes for the separation of the east wing from Pakistan. Moreover, in the absence of good communication, the poorer units tend to develop a complex of neglect and feel that they are receiving less than their fair share of resources for development.
In India, the North- Eastern states are having similar feelings and creating problems for the federation. External forces External forces also create hindrances for a federation.
Executive Powers of State be exercised in compliance with Union Laws: Article lays down that the executive power of every State shall be so exercised as to ensure compliance with the laws made by Parliament and any existing laws which apply in that State, and the executive power of the Union shall extend to the giving of such directions to a state as may appear to the Government of India to be necessary for that purpose.
Article of the Constitution provides that the executive power of every state shall be so exercised as not to impede or prejudice the exercise of the executive power of the Union, and the executive power of the Union shall extend to giving of such directions to a state as may appear to the Government of India to be necessary for that purpose.
In short, the Union Government can issue directions to the state Government even with regard to the subjects enumerated in the state list. Maintain means of communication of National or Military importance: The Union Government can give directions to the state with regard to construction and maintenance of the means of communication declared to be of national or military importance. Protection of the Railways: Union can issue State Governments necessary directions regarding the measures to be taken for the protection of the railways within the jurisdiction of the State.Indian Polity by Laxmikant chapter 14- Centre-State Relations(Part 1) for UPSC,State PSC,ssc cgl
It may be noted that the expenses incurred by the State Governments for the discharge of these functions have to be reimbursed by the Union Government. To ensure welfare of Scheduled Tribes in the States: Union can direct the State Governments to ensure execution of schemes essential for the welfare of the Scheduled Tribes in the States.
To secure instruction in the mother-tongue at the primary stage of education: Union can direct the State Governments to secure the provision of adequate facilities for instruction in the mother-tongue at the primary stage of education to children belonging to linguistic minority groups. To ensure development of the Hindi language: Union can direct the State Governments to ensure the development of the Hindi language. To ensure government of a State is carried on in accordance with the provision of the Constitution: Union can direct the State Governments to ensure that the government of a State is carried on in accordance with the provision of the Constitution.
If any State failed to comply with any directions given by the Union in exercise of its executive power, then President may hold that, a situation has arisen in which the Government of the State cannot be carried on in accordance with the provisions of the Constitution.
The President of India can entrust to the officers of the State certain functions of the Union Government. However, before doing so the President has to take the consent of the state Government. But the Parliament can enact law authorizing the Central Government to delegate its function to the State Governments or its officers irrespective of the consent of such State Government.
On the other hand, a State may confer administrative functions upon the Union, with the consent of the Union only. Appointment of High Dignitaries: The members of these services are recruited and appointment by the Union Public Service Commission. The members of these services are posted on key posts in the states, but remain loyal to the Union Government. The Parliament has been vested with power to adjudicate any dispute or complaint with respect to the use, distribution or control of the waters of, or in any inter-state river or river-valley.
In this regard, the Parliament also reserves the right to exclude such disputes from the jurisdiction of the Supreme Court or other Courts. Centre State Relations During Emergencies 1. The State Governments cannot ignore the directions of the Union Government, otherwise the President can take the action against the Government of the State stating that the administration cannot be carried on the accordance with the provisions of the Constitution and thus can impose President's rule on the State.
In such an eventuality the President shall assume to himself all or any of the functions of the state Government.
Under Proclamation of National Emergency: During a Proclamation of National Emergency, the power of the Union to give directions extends to the giving of directions as to the manner in with the executive power of the State is to be exercised relating to any matter. Under Proclamation of Financial Emergency: During a Proclamation of Financial Emergency, Union can direct the State Governments to observe certain canons of financial propriety and to reduce the salaries and allowances of all or any class of person serving in connection with the affairs of the Union including the Judges of the Supreme Court and High Courts.
Union also requires all Money Bills or Financial Bills to be reserved for the consideration of the President after they are passed by the Legislature of the State. It is thus, evident that in the administrative sphere the States cannot act in complete isolation and have to work under the directions and in cooperation with the Center.
Centre State Financial Relations: Indian Constitution has made elaborate provisions, relating to the distribution of the taxes as well as non-tax revenues and the power of borrowing, supplemented by provisions for grants-in-aid by the Union to the States.
Article to deals with the provisions of financial relations between Centre and States. The Constitution divides the taxing powers between the Centre and the states as follows: The Parliament has exclusive power to levy taxes on subjects enumerated in the Union List, the state legislature has exclusive power to levy taxes on subjects enumerated in the State List, both can levy taxes on the subjects enumerated in Concurrent List whereas residuary power of taxation lies with Parliament only.
Central State Relation - Legislative, Administrative and Financial
Distribution of the tax-revenue 1. Stamp duties on bills of Exchange, etc. These include taxes on the sale and purchase of goods in the course of inter-state trade or commerce or the taxes on the consignment of goods in the course of inter-state trade or commerce. Certain taxes shall be levied as well as collected by the Union, but their proceeds shall be divided between the Union and the States in a certain proportion, in order to effect on equitable division of the financial resources.
This category includes all taxes referred in Union List except the duties and taxes referred to in ArticleA and ; surcharge on taxes and duties mentioned in Article or any Cess levied for specific purposes. Surcharge on certain duties and taxes for purposes of the Union: Parliament may at any time increase any of the duties or taxes referred in those articles by a surcharge for purposes of the Union and the whole proceeds of any such surcharge shall form part the Consolidated Fund of India.
Grants-in-Aid Besides sharing of taxes between the Center and the States, the Constitution provides for Grants-in-aid to the States from the Central resources. There are two types of grants: These grants are given by the Parliament out of the Consolidated Fund of India to such States which are in need of assistance.
Different States may be granted different sums. Specific grants are also given to promote the welfare of scheduled tribes in a state or to raise the level of administration of the Scheduled areas therein Art.
Center provides certain grants to the states on the recommendations of the Planning Commission which are at the discretion of the Union Government.
These are given to help the state financially to fulfill plan targets Art. The President by order can direct that all provisions regarding division of taxes between Union and States and grants-in-aids remain suspended.
However, such suspension shall not go beyond the expiration of the financial year in which the Proclamation ceases to operate. Union can give directions to the States: To observe such canons of financial propriety as specified in the direction.
To reduce the salaries and allowances of all people serving in connection with the affairs of the State, including High Courts judges.