Centre–State Relations in India

India’s federal structure is based on a complex system of governance where power is shared between the central (Union) government and state governments. This relationship is outlined in the Constitution of India, which divides the powers, functions, and responsibilities between these two levels of government across legislative, administrative, and financial matters. 

Understanding Centre–State relations is crucial to appreciating how India operates as a federal republic and how its legal framework ensures the functioning of its federal structure.

Constitutional Framework of Centre–State Relations

The Constitution of India establishes a dual polity where the Union Government and the State Governments are provided with distinct powers and responsibilities. These are divided across three key areas:

1. Legislative Relations
2. Administrative Relations
3. Financial Relations

The Constitution also outlines the mechanisms for resolving disputes and facilitating cooperation between the Centre and the States. While the Union Government has significant powers, the States are also provided with a degree of autonomy to legislate and govern their own affairs. 

The relationship between the Centre and the States is primarily governed by Part XI (Legislative and Administrative Relations) and Part XII (Financial Relations) of the Indian Constitution.

Legislative Relations (Articles 245–255)

The legislative relationship between the Centre and the States is primarily governed by Part XI of the Constitution, specifically Articles 245 to 255. These provisions detail the scope of legislative powers, the limits of State legislation, and the relationship between Union and State laws.

Territorial Extent of Laws

The Constitution provides that the Union Parliament has the authority to legislate for the entire territory of India, including territories outside the States. On the other hand, State Legislatures can legislate only for their respective States. 

This means that while Parliament can make laws applicable across the country, State laws are restricted to the geographical boundaries of the State. However, in some cases, such as matters of national interest, Parliament has the power to extend laws across State boundaries, as discussed below.

Distribution of Legislative Subjects

The Constitution divides legislative powers into three lists: the Union List, State List, and Concurrent List.

• Union List: This contains subjects over which only Parliament can legislate. These include defence, foreign affairs, and currency.
• State List: These are matters over which only the State Legislatures can legislate, such as police, public health, and agriculture.
• Concurrent List: This contains subjects over which both Parliament and State Legislatures can make laws. If there is a conflict between Union and State laws on matters in the Concurrent List, the Union law prevails.

Additionally, Article 248 grants the Union Government residual powers, which means Parliament has the authority to legislate on matters not mentioned in the Union, State, or Concurrent Lists.

Parliamentary Legislation in the State Field

There are certain provisions under which Parliament can legislate on matters enumerated in the State List. These include:

1. Article 249: If the Rajya Sabha passes a resolution by a majority of two-thirds of its members, Parliament can legislate on a subject of the State List. This provision allows Parliament to assume power over State List matters in cases of national importance.
2. Article 250: During a national emergency, Parliament can make laws on any subject in the State List, but such laws cease to have effect six months after the emergency ends.
3. Article 252: If two or more States request Parliament to legislate on a matter in the State List, Parliament can pass a law on that matter applicable to those States.
4. Article 253: Parliament has the power to legislate for implementing international treaties, agreements, or conventions.

Centre’s Control Over State Legislation

There are certain safeguards in the Constitution to ensure that the Centre can exercise control over State legislation:

• Article 200: A State Governor can reserve certain bills passed by the State Legislature for the President’s consideration. This power enables the Centre to veto laws that may be in conflict with national interests.
• President’s Prior Consent: Some bills, such as those related to interstate trade or commerce, require the President’s prior consent before they can be introduced in a State Legislature.

Administrative Relations (Articles 256–263)

The Constitution also provides detailed provisions for administrative relations between the Centre and the States in Part XI, Chapter II (Articles 256 to 263).

Distribution of Executive Power

• The Union Executive has the power to execute laws relating to subjects on the Union List, as well as those matters arising from international agreements or treaties.
• The State Executive is empowered to execute laws relating to subjects in the State List, as long as they do not conflict with Union laws.
• Both the Union and State Executives have the authority to administer laws on matters in the Concurrent List, but States are required to comply with Union law if a conflict arises.

Centre’s Directives to States

• Article 256 mandates that every State’s executive power should be exercised in a manner that ensures compliance with Union laws.
• Article 257 gives the Union Government the authority to direct States to take action on matters of national importance, such as protecting railways, communications, or defence.

Emergency Provisions

During emergencies, the Centre gains enhanced executive powers. These provisions allow the Centre to take control of the States’ executive machinery:

• National Emergency: Under Article 352, the Centre can direct States regarding the exercise of executive powers in the event of a national emergency.
• President’s Rule: Under Article 356, if the President believes a State government cannot function according to constitutional norms, the Union Government can take direct control of the State’s administration.

Public Service Commission

While the Governor of a State appoints the members of the State Public Service Commission, only the President has the authority to remove them. The Centre exercises significant control over all-India services like the IAS, IPS, and IFS, while States manage them at the regional level.

Financial Relations (Articles 268–293)

Financial relations between the Centre and States are laid out in Part XII of the Constitution, primarily in Articles 268 to 293. These provisions outline the power to levy taxes, the distribution of tax revenues, and the sharing of financial resources between the Centre and the States.

Taxing Powers

• The Union Parliament can levy taxes on matters in the Union List, such as customs duties, income tax, and excise duties.
• The State Legislatures have the power to levy taxes on matters in the State List, such as sales tax, land revenue, and taxes on entry of goods into the State.
• The Concurrent List allows both the Centre and the States to levy taxes, but Union taxes prevail in case of a conflict.
• Residuary Powers: Parliament has the exclusive right to levy taxes on matters that do not fall into any of the above categories.

Revenue Sharing

The distribution of tax revenues between the Centre and the States is governed by various constitutional provisions:

• Article 268: Taxes levied by the Centre but collected and retained by the States (e.g., stamp duties).
• Article 269: Taxes levied and collected by the Centre but assigned to the States (e.g., taxes on the sale or purchase of goods).
• Article 270: Taxes levied and collected by the Centre but shared with the States (e.g., income tax).

Grants-in-Aid

The Centre provides grants-in-aid to States to help them meet specific financial needs:

• Statutory Grants (Article 275) are given to States in need, as determined by the Finance Commission.
• Discretionary Grants (Article 282) are provided at the Centre’s discretion, even for purposes outside its legislative competence.

Goods and Services Tax (GST)

The 101st Constitutional Amendment (2016) introduced the Goods and Services Tax (GST), a significant reform in India’s indirect taxation system. GST is a dual taxation system where both the Centre and the States levy taxes on goods and services, with a unified framework that simplifies tax administration and ensures seamless movement of goods across State borders.

Finance Commission (Article 280)

The Finance Commission is a quasi-judicial body that is tasked with recommending the distribution of tax revenues between the Centre and the States. It also suggests measures for augmenting the resources of the States.

Challenges in Centre–State Relations

Despite the clear constitutional framework, several issues persist in Centre–State relations:

• Resource Allocation: Disputes over the sharing of resources, especially tax revenues, often create tension between the Centre and the States. The introduction of GST has streamlined this, but issues around the allocation of resources remain.
• Misuse of Article 356: The frequent imposition of President’s Rule has been a point of contention. Critics argue that it is often used for political reasons rather than genuine breakdowns in constitutional machinery.
• Governor’s Role: The office of the Governor has been a source of friction. Governors are appointed by the President, and their role as the Centre’s representative in the States can lead to conflicts, especially when they act contrary to the wishes of the State government.

Ensuring Harmonious Centre–State Relations

Several commissions have suggested ways to improve Centre–State relations:

• Sarkaria Commission (1983): Recommended that the Centre should limit its intervention in concurrent subjects and focus on areas where uniformity of policy is necessary.
• Punchhi Commission (2007): Suggested a fixed five-year tenure for Governors and their removal only through impeachment, similar to the process for the President.
• NCRWC (2000): Proposed the establishment of the Inter-State Trade and Commerce Commission and called for the inclusion of emergency and disaster management in the Concurrent List.

Final Thoughts

In conclusion, Centre–State relations in India are essential to maintaining the federal structure of governance. While the Constitution provides a clear division of powers, it is the continued dialogue, cooperation, and flexibility between the two levels of government that will ensure the success of India’s federal framework. Balancing the power between the Centre and States is key to preserving the democratic integrity of the nation.