Module – 5

5.1 Relations between the Union and the States

(Centre-State Relations)

• The Constitution of India divides all powers (Legislative, Executive and Financial)
between the Centre and the states.

• The Centre-state relations can be studied under three heads:

1. Legislative relations.
2. Administrative relations.
3. Financial relations.

5.1.A. LEGISLATIVE RELATIONS

• Articles 245 to 255 in Part XI of the Constitution deal with the legislative relations
between the Centre and the states.

• There are four aspects in the Centre-states legislative relations:

1. Territorial extent of Central and state legislation;
2. Distribution of legislative subjects;
3. Parliamentary legislation in the state field;
4. Centre’s control over state legislation.
Distribution of Legislative Subjects

• The Constitution provides for a three-fold distribution of legislative subjects

between the Centre and the states:
List-I (the Union List)
List-II (the State List)
List-III (the Concurrent List)
• The Parliament has exclusive powers to make laws with respect to any of the
matters enumerated in the Union List. (Defense, banking, foreign affairs,
currency etc.,)
• The state legislature has “ in normal
Circumstances” exclusive powers to make laws with respect to any of the matters
enumerated in the State List. (Public order, police, public health and sanitation,
agriculture, etc.,)
• Both, the Parliament and state legislature can make laws with respect to any of
the matters enumerated in the Concurrent List. (Civil procedure, marriage and
divorce, population control and family planning, electricity, labour welfare etc.,)

Parliamentary Legislation in the State Field:

• The Constitution empowers the Parliament to make laws on any matter enumerated
in the State List under the following five extraordinary circumstances:
1. When Rajya Sabha Passes a Resolution : If the Rajya Sabha declares that it is
necessary in the national interest that Parliament should make laws with respect
to goods and services tax or a matter in the State List
2. During a National Emergency: The Parliament acquires the power to legislate with
respect to goods and services tax or matters in the State List, while a proclamation
of national emergency is in operation.
3. When States Make a Request: When the legislatures of two or more states pass
resolutions requesting the Parliament to enact laws on a matter in the State List.
4. To Implement International Agreements :The Parliament can make laws on any
matter in the State List for implementing the international treaties, agreements or
conventions.
5. During President’s Rule: When the President’s rule is imposed in a state, the
Parliament becomes empowered to make laws with respect to any matter in the
State List in relation to that state.

Territorial Extent of Central and State Legislation:

• The Parliament can make laws for the whole or any part of the territory of India.
• A state legislature can make laws for the whole or any part of the state. The laws
made by a state legislature are not applicable outside the state.
• The Parliament alone can make ‘extraterritorial legislation’. Thus, the laws of the
Parliament are also applicable to the Indian citizens and their property in any part of
the world.
 Centre’s Control Over State Legislation
• The governor can reserve certain types of bills passed by the state legislature for
the consideration of the President.
• Bills on certain matters enumerated in the State List can be introduced in the state
legislature only with the previous sanction of the president. (For example, the bills
imposing restrictions on the freedom of trade and commerce).
• The Centre can direct the states to reserve money bills and other financial bills
passed by the state legislature for the President’s consideration during a financial
emergency.

5.1.B. ADMINISTRATIVE RELATIONS

Articles 256 to 263 in Part XI of the Constitution deal with the administrative
relations between the Centre and the states.

Distribution of Executive Powers:

The executive power of the Centre extends to the whole of India:

To the matters on which the Parliament has exclusive power of legislation (i.e., the
subjects enumerated in the Union List);
To the exercise of rights, authority and jurisdiction conferred on it by any
treaty or agreement.

Obligation of States and the Centre:

(a) The state has to ensure compliance with the laws made by the Parliament and any
existing law which apply in the state

(b) The state should not impede or prejudice the exercise of executive power of the
Centre in the state

Centre’s Directions to the States:

The construction and maintenance of means of communication, protection of the
railways within the state, protection of the railways within the state etc.,
 5.1.C. FINANCIAL RELATIONS
Articles 268 to 293 in Part XII of the Constitution deal with Centre state
financial relations.
Allocation of Taxing Powers:
The Parliament has exclusive power to levy taxes on subjects enumerated in the
Union List and state legislature has exclusive power to levy taxes on subjects
enumerated in the State List. There are no tax entries in the Concurrent List.

Distribution of Tax Revenue:

✓ Taxes Levied by the Centre but Collected and Appropriated by the States
(Article 268)
E.g. Stamp duties
✓ Taxes Levied and Collected by the Centre but Assigned to the States (Article
269)
✓ Levy and Collection of Goods and Services Tax in Course of Inter-State Trade or
Commerce (Article 269-A) (E.g. GST)
✓ Taxes Levied and Collected by the Centre but Distributed between the Centre and
the States (Article 270)
✓ Taxes Levied and Collected and Retained by the States . E.g. Agricultural income,
taxes on lands and buildings etc.,

Grants-in-Aid to the States:

There are two types of grants-in-aid: Statutory grants and Discretionary
grants.
Statutory Grants
Article 275 empowers the Parliament to make grants to the states which are in
need of financial assistance and not to every state
Discretionary Grants
Article 282 empowers both the Centre and the states to make any grants for any
public purpose, even if it is not within their respective legislative competence

5.1.D. Finance Commission

• Article 280 provides for a Finance Commission to be constituted by President of India.

• The Finance Commission consists of a chairman and four other
members.
• The commission submits its report to the president. He lays it before both the
Houses of Parliament along with an explanatory memorandum as to the action
taken on its recommendation
FUNCTIONS:

1. The distribution of the net proceeds of taxes to be shared between the Centre and
the states, and the allocation between the states of the respective shares of such
proceeds.

2. The principles that should govern the grants-in- aid to the states by the Centre.

3. The measures needed to augment the consolidated fund of a state to supplement

the resources of the panchayats and the municipalities in the state on the basis of
the recommendations made by the state finance commission.

4. Any other matter referred to it by the president in the interests of sound finance.

5.1.E. INTER-STATE COUNCIL

• Article 263 contemplates the establishment of an Inter-State Council for the

effect coordination between the states and between Centre and states.
• Thus, the President can establish such a council.
• The Sarkaria Commission on Centre-State Relations (1983–88) made a strong case for
the establishment of a permanent Inter-State Council under Article 263 of the
Constitution.

Functions

▪ Enquiring into and advising upon disputes which may arise between states.

▪ Investigating and discussing subjects in which the states or the Centre and the states
have a common interest.

▪ Making recommendations upon any such subject, and particularly for the
better Co-ordination of policy and action on it.
 5.2 A. Emergency Provisions

• The Emergency provisions are contained from Articles 352 to 360.

• These provisions enable the Central government to meet any abnormal situation
effectively and to safeguard the sovereignty, unity, integrity and security of the
country, the democratic political system, and the Constitution.
• During an Emergency, the Central government becomes all powerful and the states
go into Htinh
gsteon Xatv io
e r, Atsasistla ntcP ro fesn
s ort, CrC Eo
I JKl of the Centre.

The Constitution stipulates three types of emergencies:

• An emergency due to war, external aggression or armed rebellion (Article 352). This
is popularly known as ‘National Emergency’. However, the Constitution employs the
expression ‘proclamation of emergency’ to denote an emergency of this type.
• An Emergency due to the failure of the constitutional machinery in the states (Article
356). This is popularly known as ‘President’s Rule’. It is also known by two other
names–‘State Emergency’ or ‘constitutional Emergency’. However, the Constitution
does not use the word ‘emergency’ for this situation.
• Financial Emergency due to a threat to the financial stability or credit of India
(Article 360).

5.2. B. Freedom of Trade Commerce and Inter course

• India had borrowed this provision from Section 92 of the Australian Constitution, it
also made sure to include the provision that the free flow of goods is allowed not
only between different States but also within a State as well.
• Article 301 of the Indian Constitution provides that the trade, commerce and
intercourse in the country should be free throughout the country.
• This provision ensures removing the imposition of any restrictions which may be
put up, it ensures the free flow of goods throughout the country.

5.2.C. Comptroller and Auditor General of India (CAG)

• The Constitution of India (Article 148) provides for an independent office of

the Comptroller and Auditor General of India (CAG).
• He is the head of the Indian Audit and Accounts Department.
• His duty is to uphold the Constitution of India and laws of Parliament in the field of
financial administration.
APPOINTMENT AND TERM OF C A G:

• The CAG is appointed by the president of India.

• He holds office for a period of six years or upto the age of 65 years, whichever is
earlier.
DUTIES AND POWERS OF CAG:
• He audits the accounts related to all expenditure from the Consolidated Fund of India.
• He audits all trading, manufacturing, profit and loss accounts, balance sheets and
other subsidiary accounts kept by any department of the Central Government and
state governments.
• He audits the receipts and expenditure of the Centre and each state.
• He audits the receipts and expenditure of All bodies and authorities substantially
financed from the Central or state revenues.
• He audits the accounts of any other authority when requested by the President or
Governor.
• He acts as a guide, friend and philosopher of the Public Accounts Committee of the
Parliament.

5.2. D. Public Services

• The public services (civil services or government services) in India are classified
into three categories–

1. All-India services

2. Central services

3. State services

All-India Services:
All-India services are those services which are common to both Central and state
governments. The members of these services occupy top positions (or key posts)
under both the Centre and the states and serve them by turns.
At present, there are three all-India services.

1. Indian Administrative Service (IAS)

2. Indian Police Service (IPS)

3. Indian Forest Service (IFS)

Central Services:
• The personnel of Central services work under the exclusive jurisdiction of the
Central government. They hold 8specialized (functional and technical) positions in
various departments of the Central government.
• Services are classified into group A, group B, group C and group D

State Services:
• The personnel of state services work under the exclusive jurisdiction of the state
government. They hold different positions (general, functional and technical) in the
departments of the state government.

5.2.E. Union Public Service Commission:

• The Union Public Service Commission (UPSC) is the central recruiting agency in
India.
• Articles 315 to 323 in Constitution contain elaborate provisions regarding the
composition, appointment and removal of members along with the independence,
powers and functions of the UPSC.
• The UPSC consists of a chairman and other members appointed by the president
of India. Usually, the Commission consists of nine to eleven members including
the chairman.
• The chairman and members of the Commission hold office for a term of six years
or until they attain the age of 65 years, whichever is earlier.

FUNCTIONS OF UPSC:
• It conducts examinations for appointments to the All-India services, Central services
and public services of the centrally administered territories.
• It serves all or any of the needs of a state on the request of the state governor and
with the approval of the president of India.
• All matters relating to methods of recruitment to civil service and for civil posts
• Any other matter related to personnel management.

5.2.F. ADMINISTRATIVE TRIBUNALS

• Article 323 A empowers the Parliament to provide for the establishment of

administrative tribunals for the adjudication of disputes relating to recruitment and
conditions of service of persons appointed to public services of the Centre, the
states, local bodies, public corporations and other public authorities.
• The 1985 act authorises the Central government to establish one
Central administrative Tribunal and the State administrative
Central Administrative Tribunal (CAT):

• The Central Administrative Tribunal (CAT) was set up in 1985 with the principal
bench at Delhi and additional benches in different states.
• At present, it has 17 regular benches, 15 of which operate at the principal
seats of high courts and the remaining two at Jaipur and Lucknow.
• The CAT is a multi-member body consisting of a chairman and members.
• The CAT exercises original jurisdiction in relation to recruitment and all service
matters of public servants covered by it.

State Administrative Tribunals(SAT):

• The Administrative Tribunals Act of 1985 empowers the Central government to
establish the State Administrative Tribunals (SATs) on specific request of the
concerned state governments.
• SATs exercise original jurisdiction in relation to recruitment and all service
matters of state government employees.
• The chairman and members of the SATs are appointed by the president after
consultation with the governor of the state concerned.
• There is also a provision for setting up of Joint administrative tribunal (JAT) for
two or more states.

5.3.a. Official Language

• Articles 343 to 351 of the Indian Constitution deals with the official language.
• The provision of official languages are divided into four heads

1. Language of the Union

2. Regional languages

3. Language of the judiciary

4. Texts of laws and Special directives

LANGUAGE OF THE UNION:

• Hindi written in Devanagari script is to be the official language of the Union along
with English.
Regional Languages:

• The legislature of a state may adopt any one or more of the languages in use in the
state or Hindi as the official language of that state.
• Kerala – Malayalam

LANGUAGE OF THE JUDICIARY AND TEXTS OF LAWS:

• English language can only be used for all proceedings in the Supreme Court and in
every high court.
• The governor of a state, with the previous consent of the president, can authorize
the use of Hindi or any other official language of the state, in the proceedings in the
high court of the state.
• State legislature can prescribe the use of any language (other than English) with
respect to bills, acts, ordinances, orders, rules, regulations or bye-laws, but a
translation of the same in the English language is to be published.

5.3.b. Elections

• Articles 324 to 329 of the Indian Constitution explains the electoral system in our
country.
• The Constitution (Article 324) provides for an independent Election Commission in
order to ensure free and fair elections in the country.
• Election commission consists of a chief election commissioner and two
election commissioners.
• There is to be only one general electoral roll for every territorial constituency for
election to the Parliament and the state legislatures
• No person is to be ineligible for inclusion in the electoral roll on grounds only of
religion, race, caste, sex or any of them.
• Every person who is a citizen of India and who is 18 years of age, is entitled to
vote at the election.
• Parliament may make provision with respect to all matters relating to elections to
the Parliament and the state legislatures including the preparation of electoral rolls,
the delimitation of constituencies and all other matters necessary for securing their
due constitution.

• Elections for the Lok Sabha and every state Legislative Assembly have to take place
every five years, unless called earlier.
• An Electronic Voting Machine (EVM) is a simple electronic device used to record
votes.
 5.3.c. Special Provisions Relating to Certain Classes

• In order to realise the objectives of equality and justice as laid down in the
Preamble, the Constitution makes special provisions for the scheduled castes (SCs),
the scheduled tribes (STs), the backward classes (BCs) and the Anglo-Indians.
• These special provisions are contained from Articles 330 to 342A of the
Constitution.

Special Provisions are related to the following:

Reservation in Legislatures
Special Representation in Legislatures
Reservation in Services and Posts
Educational Grants
Appointment of National Commissions
Appointment of Commissions of Investigation

5.3.d. Amendment of the Constitution

• Article 368 of the Constitution deals with the powers of Parliament to amend the
Constitution and its procedure.
The Constitution can be amended in three ways:

1. Amendment by simple majority of the Parliament

2. Amendment by special majority of the Parliament

3. Amendment by special majority of the Parliament and the ratification of half

of the state legislatures.

PROCEDURE FOR AMENDMENT:

• An amendment of the Constitution can be initiated only by the introduction of a bill

for the purpose in either House of Parliament and not in the state legislatures.

• The bill must be passed in each House by a special majority.

• After duly passed by both the Houses of Parliament and ratified by the state
legislatures (where necessary)

• The president must give his assent to the bill.

• After the president’s assent, the bill becomes an Act.

Differentiate State Government and Union Territory:
State Government:
1. Legislature:
• Each state has its own elected legislature, which is responsible for making
laws on subjects mentioned in the State List of the Seventh Schedule of the
Constitution of India.
2. Governor:
• Each state has a Governor appointed by the President of India. The Governor
is the constitutional head of the state and represents the President at the
state level.
3. Chief Minister:
• The Chief Minister is the head of the elected government in the state. The
Chief Minister is appointed by the Governor and is usually the leader of the
majority party or coalition in the state legislature.
4. Representation in Rajya Sabha:
• States are represented in the Rajya Sabha (Upper House of the Parliament of
India) based on their population. Members are elected by the elected
members of the State Legislative Assembly.
5. Powers:
• States have the power to legislate on various matters such as public order,
police, health, agriculture, and local government, among others, as per the
State List.
6. Financial Autonomy:
• States have their own revenue sources and financial autonomy to levy and
collect taxes, duties, and fees, and also receive grants-in-aid from the Union
Government.
7. Administrative Setup:
• Each state has its own administrative setup with departments and services
to manage the affairs of the state.
Union Territory:
1. Administration:
• Union Territories are directly administered by the President of India through
an Administrator appointed by him/her.
2. Legislature:
• Union Territories may or may not have a legislative assembly. If there is a
legislative assembly, it has limited powers and deals with matters specified
by the Union Parliament.
3. Representation in Parliament:
• Union Territories are represented in the Parliament through nominated
members in the Lok Sabha (Lower House) and may have representation in
the Rajya Sabha as well.
4. Powers:
• The Parliament of India has the power to make laws on any subject for Union
Territories, overriding the legislative powers of the Union Territory's
legislature.
5. Financial Autonomy:
 • Unlike states, Union Territories do not have their own revenue sources and
are financially dependent on the Union Government. They receive grants-in-
aid from the Union Government for their functioning.
6. Administrative Setup:
• Union Territories are directly administered by the Union Government
through an appointed Lieutenant Governor or Administrator, and they do
not have a Chief Minister.

Summary:
• State Government:
• Elected legislature
• Governor as constitutional head
• Chief Minister as head of the government
• Representation in Rajya Sabha based on population
• Financial autonomy and own revenue sources
• Administrative setup with departments and services
• Union Territory:
• Direct administration by the President through an Administrator
• Limited legislative powers, if any
• No Chief Minister
• Nominated members in Parliament
• Financial dependence on the Union Government
• No separate administrative setup with departments

Discuss the types of Emergencies in the Constitution of India:-

The Constitution of India provides for three types of emergencies under Articles 352, 356,
and 360, to safeguard the sovereignty, unity, and integrity of the country. These
emergencies empower the Central Government to override the usual governance structure
in times of crisis.

1. National Emergency (Article 352)

This is declared when the security of India or any part of it is threatened by war, external
aggression, or armed rebellion.
Key Features:
• Grounds for Declaration: War, external aggression, or armed rebellion.
• Authority: Proclaimed by the President based on a written recommendation from
the Council of Ministers led by the Prime Minister.
• Effect:
o Fundamental Rights under Article 19 may be suspended.
o The distribution of powers between the Centre and States tilts heavily
toward the Centre.
o Parliament can legislate on subjects in the State List.
 o The President can modify the financial arrangements between the Centre
and the states.
• Duration:
o Initially valid for one month.
o Requires approval by both Houses of Parliament within this period.
o Can be extended indefinitely with parliamentary approval every six months.
Examples:
• 1962 (Indo-China War),
• 1971 (Indo-Pak War),
• 1975–77 (Declared by Indira Gandhi citing "internal disturbance").

2. State Emergency (President's Rule) (Article 356)

This is declared when a state government fails to function according to the provisions of the
Constitution.
Key Features:
• Grounds for Declaration:
o Failure of constitutional machinery in a state.
o The Governor of the state submits a report to the President, or the President
is otherwise convinced.
• Authority: Proclaimed by the President.
• Effect:
o The President assumes all executive powers of the state.
o The state legislative assembly may be dissolved or suspended.
o The Parliament makes laws for the state.
• Duration:
o Initially valid for 6 months.
o Can be extended up to a maximum of 3 years, with periodic parliamentary
approval.
Safeguards:
• Approval by both Houses of Parliament is required.
• Judicial review is possible (e.g., S.R. Bommai Case, 1994).
Examples:
• Frequent use in various states like Punjab (1987), Jammu & Kashmir (2018), and
others.

3. Financial Emergency (Article 360)

This is declared when the financial stability or credit of India or any part of it is threatened.
Key Features:
• Grounds for Declaration: Financial instability.
• Authority: Proclaimed by the President.
• Effect:
o The Centre gains control over the financial decisions of states.
 The President can reduce the salaries of Central and State government
o
employees, including judges.
o All financial bills passed by the State Legislatures must receive Presidential
assent.
• Duration:
o No time limit; remains in force until revoked by the President.
Examples:
• No Financial Emergency has been declared in India to date.

Comparison of the Three Emergencies:

Financial
Feature National Emergency State Emergency
Emergency

352 356 360

Article
War, external Breakdown of
Grounds aggression, armed constitutional Financial instability
rebellion machinery in a state
President on
President on advice of
Declared By Governor’s report or President
Council of Ministers
other reasons
Centre assumes Centre controls
Impact on State government is
control over state financial policies of
States dismissed
matters states
Fundamental Rights No direct impact
Suspension No suspension of
(e.g., Article 19) can on Fundamental
of Rights Fundamental Rights
be suspended Rights
Maximum of 3 years
Indefinite with Indefinite until
Duration with periodic
periodic approval revoked
approval