CENTRE-STATE AND INTER --STATE RELATIONS

(please pardon me for grammatical and spelling mistakesif any) Though some articles recognized in mrunalji`s essay competition touches this topic, this article has been designed in such a way that it covers (partially or completely) every concept behind federal structure of India, commissions and reports, government initiatives, current issues. Thus, we can ma e a brief essay in !"#$ words in any of the topic relating Indian federal structure in our main e%am. PRELIMS: &'(`s in polity, current issues MAINS: )ivision of powers, federal structure, *nion+,tate relation. Center -state relation The 'onstitution of India ,being federal in structure, divides all power(legislative ,e%ecutive and financial) between the center and the states. -owever, there is no division of judicial power as the constitution has established an integrated judicial system to enforce both the central laws as well as state law. ./0T 1I of the constitution contains concepts relating to '23T20+,T/T2 024/TI53,-I.

'23T20+,T/T2 024/TI53,

42=I,4/TI>2 024/TI53,

/)&I3I,T0/TI>2 024/TI53,

?I3/3'I/4 024/TI53,

LEGISLATIVE RELATIONS:
ARTICLES6 /78" + /7"" ASPECTS IN LEGISLATIVE RELATIONS !.Territorial e%tent of central and state legislation. 7.)istribution of legislative subjects. 9..arlimentary legislation in state field. 8.'entre`s control over state legislation. 1.TERRITORIAL EXTENT OF CENTRAL AND STATE LEGISLATION: /0TI'42 78" Parliament6 whole of the country:including sea border; (or)part of the territory$`2%tra territorial legislation`<to ma e laws applicable to the Indian citizens and their property in any part of the world. State6 with in the border of state(e%cept6ne%us in object between states).

 Exce ti!n": !.Pre"i#ent6regulations relating peace and development in 8*.T`s (/@@3,la sh,)@3-,)@)).modify laws in tribal areas. 7.G!$ern!r:not to apply (or) modify parliamentary laws in scheduled and tribal areas. %.DISTRI&'TION OF LEGISLATIVE S'&(ECTS: /0TI'42 78A,78B,78C,7"8,7"". ,'-2)*42 B(/78A<9 4I,T,) 4ist I6 *nion list< original6DB subjects,/t present6!## subjects 4ist II6,tate list<5riginal6AA subjects,/t present6A! subjects 4ist III6'oncurrent 4ist<5riginal68B subjects,/t present6"7 subjects 87nd /mendment6 " subjects from state to concurrent list !.education 7.forests 9.weights and measures 8.protection of wild animals and birds ".administration of justice(all courts)<e%cept supreme and high courts. .5E20 5? ./04I/&23T(/78B)6 To provide for establishment of additional courts for better administration of parliamentary laws(*nion list). 02,I)*/0F .5E20(/78C)6,ubjects not mentioned in any of the list in ,eventh schedule+parliament has the power to ma e law(includes new ta% imposition). '53?4I'T G2TE223 ,T/T2 /3) *3I53 4/E,(/7"8)6 !.In case of conflict between the central law and the state law on a subject enumerated in the concurrent list,the Central law prevails over the state law. 7.Exception:If the state law has been reserved for the consideration of the president and has received his assent,the the state law prevails in that state.(but66parliament can override it by ma ing a law by subsequently making a law on the same matter). ).PARLIMENTAR* LEGISLATION IN T+E STATE FIELD: /0TI'42, 78D,7"#,7"!,7"7,7"9. 3/TI53/4 I3T202,T(/78D)60ajya sabha must past resolution(7H9rd majority)<force for ! year<can be renewed any no of time < ceases A m#nths after resolution ceases(with out renewing) < state can ma e law but union law prevails over it. 3/TI53/4 2&20=23'F(/7"#)6proclamation of national 2mergency by .resident of India < inoperative after Imonths (emergency ceases). <state can ma e law but *nion law prevailJs over it. /7"!6the law made by parliament in state list (under /78D and /7"#),whether passed before or after the law made by state legislature of the state,prevails over the law made by state legislature made under the same subject.

 E-23 ,T/T2, &/K2 02(*2,T(/7"7)6Ehen 7 or more states reLuest parliament to ma e law in prescribed subject(surrender of power of states to union). 5ther states can pass resolution to enact the law(same). 2%amples6 !.wild life act,!DB7 7.transplantation of human organs,!DD8. 9.water(prevention and control of pollution)act,!DB8 I3T203/TI53/4 /=022&23T,(/7"9)6parliament has the power to enact laws in state list for implementing international treaties,agreements,conventions.(to fulfill international obligations). 2%amples6 !.T0I., 7.2nvironment related acts 9./nti hijac ing act,!DC7 8. *3 /ct,!D8B ".=eneva convention,!DA#. .resident`s 0ule(/9"A)6.arliament empowered to ma e laws in state list. <law made is operative even after the ceasure of president`s rule < Gut can be revealed or altered or re+enacted by state legislature. ,.CENTRE-S CONTROL OVER STATE LEGISLATION: =overnor can reserve certain types of Gills passed by state legislature for the consideration of .resident.(.resident enjoys /G,54*T2 >2T5 over them). 'ertain bills can be introduced in state legislature with previous permission from .resident(matters relating to freedom of trade and commerce). ?I3/3'I/4 2&20=23'F(/9A#)6.resident can direct the states to reserve (money,financial)bills for his consideration.

ADMINISTRATIVE RELATIONS:
ARTICLES:%./0%/) /7"A6The states are e%pected to comply with the laws of the parliament and not impede the e%ercise of the e%ecutive powers of the union. /7"B6'enter can issue direction regarding the construction and maintenance of communications of national or military importance.It can also give instructions to state for protection of railways.2%penses incurred by the states on this account are reimbursed by the *nion. /7"C6The president can entrust officers of the states (with :agreement;or without :legislation under union list;the consent of state) certain functions of the *nion,but the e%tra costs have to be met by the *nion.

 /7"C/6=overnor of the state may, with:agreement; the consent of the central government,entrust to that government any of the e%ecutive functions of the state.(no legislative delegation possible for state). /7A#6=ov. of India can (by agreement) ma e law to territories outside India. /7A!6 ?ull faith and credit shall be given throughout the territory of India to public acts,records and judicial proceedings of the *nion and of every state. OT+ER MEANS OF CONTROL: A%/%: .arliament can provide for the adjudication of any dispute or complaint with respect to the use, distribution and control of waters of any inter+state river and river valley. A%/): The .resident can 2stablish an Inter M,tate council to investigate and discuss subject of common interest between the center and the states. .arliment can appoint a body to regulate interstate free commerce and trade.(no body yet). ALL INDIA SERVICE6 0ecruited and trained by 'enter. I',++++ I/, and I.+++++I., in !D8BJ!DAA+ I?, was created /9!76.arliament can create /I, on the basis of resolution passed by 0ajya sabha(7H9rd majority) P'&LIC SERVICE COMMISSION6 'PSC6 &embers and chairman selected by center.can serve state needs on reLuest of governor (with president approval). SPSC6Though members appointed by governor,can be removed only by president. (PSC6?or two or more states.chairman appointed by president. INTEGRAL ('DICIAL S*STEM: Nudges of ,upreme court and high court is appointed by .resident 5f India.'an be removed and transferred only by .resident of India. .arliment can constitute 'ommon -igh 'ourt. RELATIONS D'RING EMERGENCIES: /9"763ational emergency /9"A6.resident`s rule /9A#6?inancial 2mergencies. /9""6)uties of 'enter6to protect every state against e%ternal aggression and internal disturbances,to ensure gov carried out in accordance with constitution. The =overnor is appointed by .resident of India The state election commissioner ,though appointed by =overnor of the state, can be removed only by .resident. EXTRA CONSTIT'TIONAL DEVICES6 .lanning commission 3ational development council Oonal council *niversity =rants commission Transport development council

Financial relations:
/7AC+/7D9 .art 1II of the 'onstitution. The states are greatly dependent on the 'enter in this sphere as well.Though the constitution provides independent sources of revenueto states(levy ta%es on item nos 8"+A9of the state list),these are not adeLueate.Therefore,the states have to depend on the center for subsidies and contributions.

1.DISTRIB TION OF TA!ES The C#th /mendment of 7### was enacted to give effect to the recommendations of the !#th ?inance 'ommission.The commission recommended that out of central ta%es and duties 7DP should go to the states.<</4T203/TI>2 ,'-2&2 5? )2>54*TI53.+++++ came into effect 02T05,.2'TI>24F from apr!,!DDA. The CCth /mendment added new article 7AC+/ dealing with service ta%./lso inserted new subject to union list ,ervice ta%(D7+').4evived by center but collected and appropriated by both union and state. A. TAXES LEVIVED &* CENTER &'T COLLECTED AND APPROPRIATED &* STATE1A %/23: The proceeds of these duties levied within any state do not form part of the consolidated fund of India but are assigned to that state.(,tamp duties<bills of e%change,cheLues,promisory notes,policies of insurance,transfer of shares,2%cise duties<containing alcohol and narcotics).

G. SERVICE TAX LEVIED &* T+E CENTRAL GOVERNMENT &'T COLLECTED AND APPROPRIATED &* CENTER AND STATES1A %/20 A36The principles of appropriation are formulated by .arliament. '. TAXES LEVIED AND COLLECTED &* T+E CENTER &'T ASSIGNED TO T+E STATES 1A %/43: Ta%es on sale of purchase of goods in course of inter+state trade and commerce.Ta%es on the consignment of goods in the course of inter+state trade or commerce..rinciples laid down by .arliament. ). TAXES LEVIED AND COLLECTED &* T+E CENTER &'T DISTRI&'TED &ET5EEN T+E CENTER AND T+E STATE 1A %673: /ll ta%es in the union list e%cept6 )uties and ta%es referred in /7AC,/7AC+/,/7AD,/7B! and any cess levied for special purpose. distribution is prescribed by .resident of India 5n the advice of ?inance commission. 2. S'RC+ARGE ON CERTAIN TAXES AND D'TIES FOR T+E P'RPOSE OF CENTER 1A %613: .arliament can levy surcharges and duties as mentiones in /7AD and /7B#.=oes fully to union. F. TAXES LEVIED AND COLLECTED AND RETAINED &* T+E STATES: 2numerated in state list<7# in number. tolls,capitation,fees,sales ta%,land revenue,e%cise duties,ta% on agri income etc.

".DISTRIB TION OF NON-TA! REVEN E: CENTER:posts,telegraph,ban ing,broadcasting,railways,coinage currency,psu`s,escheat and lapse. STATE: irrigation,forests,fisheries,psu`s (state),escheat and lapse. #.GRANTS-IN-AID TO T$E STATES:

=0/3T,+I3+/I)

,T/T*T50F =0/3T, (/ 7B")

)I,'02TI53/0F =0/3T, (/ 7C7)

STAT'TOR* GRANTS: 1A %6.3 /7B"<.arliament + financial assistance to state. 'harged from consolidated fund of India Goth general and special purpose. 5n the recommendations of ?inance commission.

DISCRETIONAR* GRANTS: 1A %2%3 5n the advice of .lanning commission(to help states fulfill plan targets,influence state and effectuate the national plan). 3ot necessary to give. Goth center and state can ma e grants for special purpose. 4argest part of the grant ('+,) hence ..' gained significance. OT+ER GRANTS: ?or temporary period 2%port duties on jute and jute products 'harged from consolidated fund of India 0ecommended by ?inance commission.

FINANCE COMMISSION1A %273: govern grants+in aid distribution of ta%es between center and state fund for local government from '?I /ny other matter referred by .resident of India.

PROTECTION OF T+E STATES- INTEREST: To protect the interest of states in the financial matters,the constitution lays down the bills(varies state ta%,agri income,surcharge,distribution of ta%es) can be introduced in the .arliament only on the recommendation of the .resident. INTER 8GOVERNMENTAL TAX IMM'NITIES6 2%emption of central property from state ta%ation 2%emption of state property or Income from central Ta%ation. )ecided by .arliament. ,.' /)>I'26central can impose custom duties for importHe%port of state.

TRENDS IN CENTER-STATE RELATIONS

Till !DAB,5ne party rule in 'enter and states< smooth relationship. !DAB+!DCD<'entres domination over state. !DCDQcoalition era. ,tate influences centres decisions. T23,I53 /02/, I3 ,T/T2+'23T20 024/TI53,6 !./ppointmentHdismissal of =overnor 7.)iscriminatory role of governors 9.Imposition of presidents rule 8.)eployment of central forces ".0eservation of state bill to president< /bsolute >2T5 A.)iscrimination in financial allocation B...' approving in state projects C./ll India service< management D.*se of electronic media< political purpose !#.,haring of finance !!.2ncroachment of center on state list. !7.2nLuiryH)isciplinary commissions.

RECOMMENDATIONS%S GGESTIONS OF VARIO S COMMISSIONS REGARDING CENTER-STATE RELATION

1.ADMINISTRATIVE REFORMS COMMISSION&1'((): 2stablishment of Inter+state 'ouncil under /rticle 7A9

=overnors < long e%perience,non+partisan )elegation of powers(ma%im. .ossible) to the states To reduce dependency of states < more financial resource to state )eployment of central forces < only on reLuest of state

".ra*a+annar co++ission&ta+il na,-)&1'('): 2stablishment of Inter+state 'ouncil under /rticle 7A9 /9"A,9"B,9A# must be repealed /ll India services should be abolished 'ertain subjects from union and concurrent list+++++state list 0esiduary powers ++++states .lanning commission must be disbanded(a statutory body must be appointed). ?inancial commission+made permanent body

#.anan,.- sa/i0 resol-tion&1'1#): / ali )al resoloution < .unjab 'enter`s Nurisdiction must be restricted to defence ,foreign affairs,communication and currency. 'onstitution should be made ?ederal(purely) 2Lual representationHauthority of all states.

2.3est Ben4al5s +e+oran,-+&1'11): *nion +++++ federal (constitution). 'enter`s Nurisdiction must be restricted to defence ,foreign affairs,communication and currency. 0esiduary powers+++++++ states /9"A,9"B,9A# must be repealed 5n reorganization of states ++++ states consent is must. Total revenue < B"P must be allocated to states 0ajya shaba < eLual powerHrepresentation to all states /ll India services should be abolished

6.Sar7aria co++ission&1'8#): 78B recommendations made ?ormation of inter +governmental council < ..& $ '.& /9"A < sparing useJ alternative government must be e%ploredJmust be approved by

parliament =overnor < different political party of center Nudges of high court < should not be transferred without their consent. 9 language formula Eor affecting local government < local language 'entral`s control over radio and television < rela%ed ?avoured new /ll India service /7A9+interstate council. 3)' and Oonal council < active !78 recommendations acceptedJ 7##! GN.

(..-nc//i co++ission: &"991) /mendment /9"",/9"A < limited period 4ocalizing 2mergency .rovision < confined to districts and bloc s 6 for a short period (R9 months) 'ommunal violence Gill (/mendment) < deployment of central forces < short period < with consent from state. =uidelines for appointment of 'hief minister =overnor < not active in politics (atleast 7 yrs),eminent person ,not belong to the state,fi%ed five year tenure,impeachement by state assembly, '.& say in appointment,appointment by committee+ p.m, spea er ,v.p, home minister.

inter -state relation

The successful functioning of the Indian federal system depends not only on the harmonious relations and close co+operation between the center and the state but also between the states inter se. 1.inter-state 3ater ,is.-tes&A "("): .arliament < by law < distributionHcontrol of water resources. .arliament < 3o courts in India to e%ercise jurisdiction in respect of dispute. .arliament enacted two laws 6 The river Goards /ct(!D"A)< reLuest of state governments< for regulation of river valley, The Inter+,tate )isputes /ct (!D"A)< ad+hoc tribunal <decision will be final < no judicial review.

,35 !. 7. 9. 8. ". A.

T0IG*3/4 3/&2 Krishna water disputes tribunal =odavari water dispute tribunal 3armada water dispute tribunal 0avi and Geas water dispute tribunal 'auvery water dispute tribunal ,econd Krishna water disputes tribunal

,2T+*. I3 !DAD !DAD !DAD !DCA !DD# 7##8

,T/T2 I3>54>2) &aha, ar,/.. &aha, ar,/..,&..,ori 0aj,guj,&..,mah .unjab,har Kar, er,T.3,pud &aha, ar,/..

".Inter-states co-ncils &a "(#): To effect co+ordination between the states and '+,. .resident can establish councils Mpublic interest. )uties assigned < enLuireHadvice Mdisputes, investigateHdiscuss < common interest, recommendations for better co+ordination /!9!(,.' to solve inter +state disputes) >s /7A9 66 ,.' (only legal disputes, binding ),'ouncil(legalHnon+legal ,only advisory). S ecial C!9nicl" :!rme#: (first 9 < president,other 7 < parliamentary act).0elated subjects. !.'entral council of health 7.central council of local government and urban development. 9.8 regional councils for sales ta% for 3,2,E,, zones. 8.'entral council for Indian medicine ".'entral council of -omeopathy. ESTA&LIS+MENT OF INTER0STATE CO'NCIL: !DD# < >...,ingh =overnment < 5n ,ar aria commission recommendations. &embers6 ..& , '.& ,/dministrators of *.T, A central 'abinet ministers(by ..&) including -ome minister ,tate minister can be invited )uties assigned < enLuireHadvice Mdisputes, investigateHdiscuss < common interest, recommendations for better co+ordination. &eet thrice in a year. #.inter-state tra,e an, co++erce&a#91-#91): /rticle 9#! M 9#B J .art 1III .05>I,I53,6 !. /9#! M )eclares that trade, commerce and intercourse throughout the territory of India shall be free < 3o restrictions bHw states . 2%ceptions / 9#7+9#".

7. /9#7 < .arliament can impose restrictions. should not discriminate. only in case of scarcity of goods. 9. /9#9 < ,.4 can restrict(reasonable) < previous sanction from president < should not give preference. 8. /9#8 < ,.4 can impose ta% on goods(but no discrimination) < similar goods in state affected. ". / 9#" < freedom of trade < subject to nationalization laws .arliament < can constitute /uthority to regulate trade < no such authority yet.

2.:onal co-ncils: ,tatutory body(/ct of .arl.) < ,tates 0eorganisation /ct !D"A " Oones /dvisory body &2&G20,6 +!me mini"ter of central government, '.& $7 &I3I,T20, of member states, /dministrators of *.T`s /)>I,50,6 person from ..','., of member states, )evelopment commissioner of states. 5GN2'TI>2,6 integration of countries, platform for resolving regional issues, growth of region, remove after effects of reorganization,co+ordination and co+ operation, secure political eLuilibrium.

,35 3/&2 ! 3orthern O' 7 9 8 " 'entral O' 2astern O' Eestern O' ,outhern O'

&2&G20, N@K,him..,-ar,.un,0aj,)elhi,'han d *..,*ttar,'hhat,&.. Gih,Nhar,E.G,5ris =uj,&aha,=oa,dadra@3,)@) /.., ar,T.3,Ker,pud

-( 3.)elhi /llahabad Kol atta &umbai 'hennai

6.nort/-eastern co-ncil: 2stablished by separate act of parliament < 3orth 2astern 'ouncil /ct !DB! Mem;er"6/ssam,&anipur,&egalaya,/.pradesh,&izoram,Tripura,,i im. F9ncti!n"6coordinated regional planning < common importance,&aintanance of security and public order.

C RRENT ISS ES:

!. Inter0 "tate <ater #i" 9te" < averi river water disputr between Karnata a and Tamil nadu, ,.' verdict ,0iver board, 'entral gov. order (=azettee). Krishna Eater Tribunal, &ullai periyar dam issue, -ogena al .roject. 7. G!!#" an# "er$ice" Tax: '=,T,,=,T < !9th ?.' tas force report,)istribution issues. 9. Smaller "tate" an# ;alance !: !<er: Telengana bill, other seperatists in India, .ositive of ,maller states < 7nd /0' recommendations 8. E=9al re re"entati!n" !: "tate in ra>?a "a;@a: ildip nayyar vs, union of India case ,7nd /rc recommendations 5. Maintenance of communal harmony: prevention of communal and targeted violence (access to justice and reparations) bill, 7#!! < affecting federal nature < ,tate`s dissatisfaction. 6. MIGRATION: 'onstitutional provision /!D (!)(d) < affecting development < affecting demographic division < over population in urban areasHstates. 7. Naxals: spread along the underdeveloped states, )eployment of central force, 0ed corridor,=ov. initiatives. 8. Mineral distribution: 'onstitutional provision < 'entrelist and state list , 5ver e%ploitation, mining scam(iron ore ,coal) 9. Infrastructure ~ Sustainable,inclusive growth, SEZ ,Land acquisition by state govern ent.

Re;erences:
http6HHen.wi ipedia.orgHwi iH,ar ariaS'ommission http6HHwww.enableall.orgHcompetitive+ LuestH=KHIndian?ederalism'enter,tate0elations.html http6HHtimesofindia.indiatimes.comHtopicH'entre+,tate+0elationship http6HHwww.jeywin.comHwp+contentHuploadsH7#!#H#CH'ommission+0eport+on+'entre+ ,tate+0elations.pdf 'onstitution of India by Ga shi Indian polity by 4a shmi ant Tata &c=raw -ill =, manual 7#!9 Nagaran josh The -indu < 'urrent issues ----J ! " # $%& '() * $.#

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