Module – 5

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.
 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
Distribution of Legislative Subjects
• The Constitution provides for a three-fold
distribution of legislative subjects between
the Centre and the states:
1. List-I (the Union List)
2. List-II (the State List)
3. 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. (Defence,
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.
 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:
(i) To the matters on which the Parliament has
exclusive power of legislation (i.e., the subjects
enumerated in the Union List);
(ii) 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.,
 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
 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
recommendatHiinogstnon [Link], Assistant Professor, CCE IJK
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.
 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.
 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 Htinhgsteon Xatvioer, AtsasistlantcProofesnsort, CrCEoIJKl of
 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).
Hingston Xavier, Assistant Professor, CCE IJK
 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. Hingston Xavier, Assistant Professor, CCE IJK
 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
• 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
• 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.
 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 specialised (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.
 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
• 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.
Hingston Xavier, Assistant Professor, CCE IJK
 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
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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.
Hingston Xavier, Assistant Professor, CCE IJK
 State Administrative Tribunals
• 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 an provision for setting up of joint
administrative tribunal (JAT) for two or more
states. Hingston Xavier, Assistant Professor, CCE IJK
 Official Language
• Articles 343 to 351 of the Indian Constitution
deals with the official language.
• The provision of official langauge 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 authorise 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.
 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.
 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:
1. Reservation in Legislatures
2. Special Representation in Legislatures
3. Reservation in Services and Posts
4. Educational Grants
5. Appointment of National Commissions
6. Appointment of Commissions
of Investigation
 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
Act.
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