Indian Federalism: Centre-State Relations Explained for UPSC SSC

Nature of Indian Federalism

India's Constitution establishes a federal system with a strong unitary bias. This means that while powers are divided between the Centre and states, the Centre often holds more authority, especially during emergencies. Dr. B.R. Ambedkar described India's system as 'a federation with a strong unitary bias.' This unique structure is sometimes called 'quasi-federal' or 'cooperative federalism.' The Seventh Schedule of the Constitution clearly delineates legislative powers through the Union List, State List, and Concurrent List. The Union List has 97 subjects, the State List has 66 subjects, and the Concurrent List has 47 subjects. Originally, these numbers were 97, 66, and 47 respectively, but after the 42nd Amendment Act of 1976, five subjects were transferred from the State List to the Concurrent List, making the State List have 61 subjects and the Concurrent List 52 subjects. However, the original numbers are still often cited for the lists' initial composition.

Legislative Relations

Articles 245 to 255 in Part XI of the Constitution deal with legislative relations between the Centre and the states. Parliament can make laws for the whole or any part of India, and a state legislature can make laws for the whole or any part of the state. The Seventh Schedule is key here, dividing subjects into three lists. The Union Parliament has exclusive power to legislate on subjects in the Union List. State legislatures have exclusive power over subjects in the State List. Both the Parliament and state legislatures can make laws on subjects in the Concurrent List, but in case of a conflict, the Central law prevails. There are also provisions for Parliament to legislate on State List subjects under specific circumstances, such as when the Rajya Sabha passes a resolution (Article 249), during a National Emergency (Article 250), when states request it (Article 252), or to implement international treaties (Article 253).

Administrative Relations

Articles 256 to 263 in Part XI of the Constitution govern administrative relations. States must comply with Central laws and executive directions. The Centre can issue directions to states to ensure compliance with parliamentary laws and for the maintenance of means of communication of national or military importance. The President can entrust Union functions to state governments, with their consent (Article 258). Conversely, a state governor can entrust state functions to the Union government, with its consent (Article 258A). The Constitution also provides for inter-state cooperation through mechanisms like the Inter-State Council (Article 263), which facilitates coordination between states and the Centre. All-India Services (IAS, IPS, IFS) play a crucial role in maintaining uniformity in administration across the country, as they are recruited by the Centre but serve in states.

Financial Relations

Articles 268 to 293 in Part XII of the Constitution deal with financial relations. The Constitution allocates taxing powers between the Centre and states. For example, the Centre levies income tax and corporation tax, while states levy sales tax (now GST subsumes many of these) and land revenue. The Goods and Services Tax (GST), introduced by the 101st Constitutional Amendment Act in 2016, significantly altered the financial landscape, creating a unified tax system. The Finance Commission (Article 280) is a quasi-judicial body constituted every five years by the President to recommend the distribution of net proceeds of taxes between the Union and the states, and the principles governing grants-in-aid to states. Grants-in-aid are provided to states by the Centre, both statutory grants (Article 275) and discretionary grants (Article 282).

Emergency Provisions Impact

The emergency provisions in the Constitution significantly alter the Centre-State balance, shifting power towards the Centre. During a National Emergency (Article 352), the Centre can give directions to states on any matter, and Parliament can legislate on State List subjects. Under President's Rule (Article 356), when a state government cannot function according to constitutional provisions, the President assumes the functions of the state government, and Parliament exercises the powers of the state legislature. Financial Emergency (Article 360) allows the Centre to direct states to observe canons of financial propriety and reduce salaries of state government employees. These provisions underscore the unitary bias of the Indian federal system, allowing the Centre to assume greater control during crises.

Important Keywords Explained

Quasi-Federalconcept

A system of government that is federal in form but has strong unitary features. India is often described as quasi-federal because while it has a division of powers, the central government holds significant authority, especially during emergencies or in areas of conflict with states.

Seventh Scheduleconcept

A part of the Indian Constitution that divides legislative powers between the Union and State governments. It contains three lists: the Union List (subjects for central government), State List (subjects for state governments), and Concurrent List (subjects for both).

Finance Commissionorganization

A constitutional body established under Article 280 of the Indian Constitution. Its primary function is to recommend the distribution of tax revenues between the Union and states, and among states, and to determine the principles for grants-in-aid to states.

Inter-State Councilorganization

A non-permanent constitutional body established under Article 263 of the Indian Constitution. Its purpose is to investigate and discuss subjects of common interest between the Union and states, or among states, and to make recommendations for better coordination of policy and action.

Additional Facts & Context

• The Sarkaria Commission (1983) was set up to examine Centre-State relations.
• The Punchhi Commission (2007) also reviewed Centre-State relations.
• Article 249 allows Parliament to legislate on a State List subject if Rajya Sabha passes a resolution.
• The 101st Constitutional Amendment Act, 2016, introduced the Goods and Services Tax (GST).
• Article 356 (President's Rule) has been invoked over 100 times since 1950.