Centre-State Relations

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1. Legislative Relations (Articles 245 to 255)

The Constitution divides legislative powers between the Centre and the States with respect to territory and subject-matter.

  • Territorial Jurisdiction: Parliament can make laws for the whole or any part of India (including extra-territorial legislation). State legislatures can make laws for the whole or any part of that state.
  • Subject-Matter: Three lists in the Seventh Schedule (Union, State, Concurrent). In case of conflict in the Concurrent list, Central law prevails (Doctrine of Repugnancy - Art 254).
  • Parliamentary Legislation in State Field: Parliament can legislate on state subjects under 5 extraordinary circumstances:
    1. If Rajya Sabha passes a resolution (Art 249).
    2. During a National Emergency (Art 250).
    3. When States make a request (Art 252).
    4. To implement International Agreements (Art 253).
    5. During PresidentтАЩs Rule (Art 356).

2. Administrative Relations (Articles 256 to 263)

Executive power of every state must be exercised so as to ensure compliance with the laws made by Parliament. The Centre can give directions to states for:

  1. Construction and maintenance of means of communication of national or military importance.
  2. Measures for protection of railways.
  3. Provision of facilities for instruction in mother-tongue at primary stage.
  4. Drawing up of schemes for welfare of Scheduled Tribes.

Article 262 provides for adjudication of inter-state water disputes, while Article 263 provides for an Inter-State Council to investigate and discuss subjects of common interest.

3. Financial Relations (Articles 268 to 293)

The taxing powers are divided between the Centre and States. Residuary power of taxation is with Parliament.

  • Grants-in-Aid: The Constitution provides for Statutory Grants (Art 275 - on recommendation of Finance Commission) and Discretionary Grants (Art 282 - for any public purpose).
  • Finance Commission (Art 280): A quasi-judicial body appointed every five years by the President to recommend distribution of net proceeds of taxes between Centre and States and among States.
  • GST Council (Art 279A): A constitutional body for making recommendations on GST issues, chaired by the Union Finance Minister.