Centre-State Relations (245-255)

Legislative: Territorial extent, Distribution of Subjects, Parliamentary

legislation on SL, Centre control over State legislation
Parliament has extra-territorial jurisdiction
Limitations: A&N, Lakshadweep, D&NH: Prez orders have
precedence over parliamentary acts
Act of parliament has no effect /effective with modifications:
Scheduled areas: Governor, Tribal areas: President (TMM),
Governor (Assam)
Distribution of subjects
Concurrent: clash > state prevails if presidential assent>
Parliament can override (Art 254)
Union:
Concurrent: Labour and Labour Reforms, Environment
State: Law and Order, Police, Land, Agriculture, Rivers,
Alcohol, Disaster Management, Education, Land Acquisition,
Power, Water Supply, Rural Sanitation, PDS (Distribution)
Parliamentary legislation on state subjects:5 conditions
249, 253 (+4), 352, 356 (+4)
RS passes a resolution: National interest (Art 249), 2/3rd of
members present and voting.
6 months from the expiry of 1 year from resolution
Renewal of Resolution: 1 year at a time
To implement international treaties (Art 253)
National Emergency (352): cease after 6 months
President Rule (356): continues, can be repealed
States request: SL cannot make laws anymore
Centre control over state legislation
Guv can reserve certain types of bills for Prez > ABS VETO
Bills on certain SL subjects: Need prior sanction of Prez
Prez can direct the states to reserve Money/financial bills
during emergency
Other ways to control SL
31(A): If SL takes away private property in violation of Art 14
and 19, has to receive presidential consent.
Art 31(B): If a state law has to come in 9th schedule, it must be
accepted by the parliament (placing anything in a schedule
amounts to CAA)
Art 31(C): Acts implementing DPSP but violating Art 14 and
19 have to get presidential assent.
Administrative
Executive Powers Distribution: on lines of legislative power (with
exceptions)
SL: State, UL/Treaty: Union has executive power.
Concurrent List: Executive power with states except when
Parliament specifically vests the power in the union
IC itself vests such powers in the union
Obligation of States and Centre: 2 restrictions
256: Ensure compliance with Central laws
257: Not impede/prejudice central executive power
 Centre can give directions u. 256/257 > Noncompliance
> 365 > 356
Centres directions to States
257: proper functioning of railways, military, communications
etc.
262: Parliament can setup a tribunal to resolve interstate water
disputes. But theterms of reference of such a tribunal and the
question of final authority onaccepting or rejecting its award
are all decided by center.
339: Drawing and executing schemes of ST welfare.
350: Ensuring delivery of education in mothertongue @
primary stage for linguistic minorities.
351: Development of Hindi language
355: Ensure governanceof the state in accordance with IC
Art365: If state fails to comply with any direction in exercise of
its executive power > president may hold it a breach of IC >
impose Art 356
258: Mutual delegation of Executive power:possible (not for legislative
powers)
Tomitigate rigidity
Conditionalor Unconditional
No legislative sanction needed
Centre to State:
Art 258(1): Prez with the consent of SG,entrust to CG
258 (2): WITHOUT CONSENT > law byparliament can
empower CG to give powers/duties on SG
Stateto Centre
Art 258(A): Guv with the consent of CG,entrust to SG
Financial
Tax Distribution
268(Levied by union but collected and kept by states): Stamp
duties on bills ofexchange
268A(Levied by union, collected and kept by Centre and
states)
269:Levied and collected by union but assigned to states: Tax
on stock exchanges,succession tax, terminal tax @ railway
stations and ports, freight tax, tax onsales of newspapers, tax
on inter state trade.
Onlyunion: Customs, corporate tax, capital gains tax, wealth
tax, surcharge andcesses.
Onlystates: Land revenue, income tax on agriculture, tax on
mineral rights, landtax, profession tax (ceiling of Rs. 2,500),
stamp duties except on documents inunion list.
Finance Commission (280)
Chairman(experience in public affairs) + HC judge (or one
qualified to be so) + Personhaving knowledge of finance and
accounts of government + a person withexperience in financial
and administrative matters + an economist
Functions(Recommend..)
Distribution of taxes between centre andstates.
principles which govern grants in aids.
 Measures to augment consolidated fund ofstates for
supplementing the resources of PRIs
Any other matter as asked by president.
Borrowing power of States
can'tborrow outside India.
borrowingpower may be limited by state legislature.
Ifany union loan or guarantee is outstanding then the state
can't borrow withoutunion consent. (Art 293)
Mutual Immunity from Taxation
Unionproperty: immune from state tax (Except as per law
made by parlia)
Stateproperty:
Immune from property taxes (not customs orexcise
duties).
Except as per law made by parliament, stateincome
from any commercial activity shall be immune from
union income tax.
Parliament may exempt any income of statefrom any
tax.
Emergency Provisions
While 352: Prez can modify the constitutional distribution of revenues
(Art 354)
360: Union can direct the state to
Observe financial austerity
Reduce salaries
Reserve for presidential consideration all money and financial
bills.
Commissions
Administrative Reforms Commission
Rajamannar Committee
Sarkaria Commission
Punchhi Commission
Dispute Resolution Mechanism (BUILD ON IT)
If a law deals substantially with thematter in its own domain and only
incidentally encroaches > not invalid.
Cooperative Federalism
Recognizes that distribution of power between center and states is not
an end in itself but just a means of public welfare. Both must behave
harmoniously instead of conflict.
National Integration Council:
Extra- body created to deal with welfare measures for the
minorities.
Union ministers, CMs, representatives from political parties,
labor,women, media representatives as well
Zonal Councils
Extra- but statutory bodies (introduced along with Sate
ReorganizationAct, 1956).
Consists of CMs and 2 other ministers from the states and
theadministrators of UTs in the zone.
Union home minister is the common chairman of all zonal councils.