Centre–State Relations

• 1. During President’s rule (Article 356)
• 2. During a National Emergency (Article 250)
• 3. To implement international agreements (Article 253)
• 4. When RS passes resolution by 2/3rd majority (Article 249)
• 5. When two or more states pass resolution (then those states lose power) (Article 252)
• Who legislates on which list? Parliament → Union List and Concurrent List (State List only in the cases above); State legislature → State List and Concurrent List
• Rail, Air, Port, Post, Telegraph Banking, Currency, Insurance Stock exchange, Foreign trade Labour/safety in mines/oilfields Fisheries beyond territorial water — Education Forest, protection of animals Trade Union Adulteration Population control, family planning Adoption, Succession Transfer of property other than agri land — Health, Sanitation, Liquor Agri, Tax on agri income Animal husbandry, Fisheries Trade & Commerce Capitation tax, Treasure trove Land, Police, Prison Local govt
• Tax: Income, Corporation, Capital — Economic and Social Planning —

• (a) Education (b) forests (c) weights & measures (d) protection of wild animals and birds (e) administration of justice (constituting courts except SC/HC)

• Centre (India, Canada, GoI Act 1935)
• States (USA, Australia, Objectives Resolution)

• Legislative power
• Executive power
• Financial power
• Judicial power (integrated judiciary)

• Union law prevails over State law in case of conflict/overlap

1. with the consent of all the States
2. with the consent of the majority of States
3. with the consent of the States concerned
4. without the consent of any State

Answer: without the consent of any State

Art. 253 — no State consent needed to implement international treaties.

1. Fisheries
2. Agriculture
3. Insurance
4. Betting and Gambling

Answer: Insurance

Insurance is in the Union List.

1. Forests: Concurrent List
2. Stock Exchanges: Concurrent List
3. Post Office Savings Bank: Union List
4. Public Health: State List

Answer: Stock Exchanges: Concurrent List

Stock exchanges are in the Union List, not the Concurrent List.

• Statutory grants (Art. 275) — given on the Finance Commission's recommendation; charged on the Consolidated Fund of India
• – General: for states in need of financial assistance
• – Specific: for scheduled tribes or scheduled areas
• Discretionary grants (Art. 282) — Centre or States can give grants for any public purpose, even if it is not within their legislative competence

• Center can borrow from within or outside India, on security of Consolidated Fund of India, but within limit set by Parliament.
• State can borrow from within India, on security of Consolidated Fund of State.
• State cannot borrow without Centre's permission, if it still owes Centre money.

• 1966: First ARC under Morarji Desai followed by K Hanumanthaiah
• 1969: Rajamannar Committee by Tamil Nadu Govt
• 1973: Anandpur Sahib Resolution by Akali Dal
• 1977: West Bengal Memorandum by WB govt
• 1983: Sarkaria Commission for Centre-State relations
• 2005: Second ARC under Veerappa Moily
• 2007: Punchhi Commission for Centre-State relations

1. Centre-State relations
2. Inter-State relations
3. Financial aid to States
4. Splitting of LIC

Answer: Centre-State relations

The Sarkaria Commission (1983) examined Centre–State relations.

1. Police Reforms
2. Tax Reforms
3. Reforms in Technical Education
4. Administrative Reforms

Answer: Administrative Reforms

Veerappa Moily chaired the Second Administrative Reforms Commission (2005).