Centre State Relations- Legislative, Administrative, and Financial [UPSC Notes]

Centre State Relations

Centre State Relations in India are fundamental aspect of the country’s federal structure, ensuring a balance of power and responsibilities between the central government and individual state governments. These relations are categorized into three broad spheres: legislative, administrative, and financial. Legislative relations define the law-making powers, administrative relations deal with the distribution of financial resources. These frameworks facilitate cooperation and coordination, ensuring national integrity while accommodating regional diversity.

The Constitution of India establishes a federal state and gives both the Centre and the States the authority to act independently within their respective spheres of jurisdiction.

Concept of Division of Power:

1. The distribution of power between the Centre and the States is known as the division of power.
2. Division of power is different from the separation of powers: The former is about the distribution of powers between the Union and the states (vertical distribution of power), and the latter is about the separation of powers among three organs of government, i.e. legislature, judiciary and executive (Horizontal distribution of power).

In India, the division of powers is specified in the Constitution itself. The relations between the Centre and the states, which constitute the core of federalism, have been enumerated in Parts XI and XII of the Constitution under the following titles:

1. Legislative Relations (Part XI Chapter I)
2. Administrative Relations (Part XI Chapter II)
3. Financial Relations. (Part XII)

Let’s visit each one by one.

1. Legislative Relations Between Centre and State

The legislative relationships between the Centre and the States are outlined in Articles 245 to 255 of Part XI of the Indian Constitution and can be classified into four aspects:

➤ Territorial jurisdiction of Centre Legislation

1. Territorial Legislation: The Parliament can legislate for the whole or any part of the territory of India. The territory of India includes:
   1. States,
   2. Union Territories and
   3. Any other territory that may be acquired in the future.
2. Extra-Territorial Legislation: The Parliament also possess the power of extra-territorial legislation, which will cover Indian resident and their property outside India.

➤ Territorial Jurisdiction of the State Legislature

States, on the other hand, can make laws for the whole or any part of the State.

✦ Limitations on Parliament’s Jurisdiction

• Schedule 5: The application of laws made by Parliament to any scheduled area can be barred or modified by the Governor’s notification.
• Schedule 6: As per Schedule 6, the Governor of Assam may direct that an act of Parliament will not apply to autonomous districts of Assam or will apply with certain modifications and exceptions. Similar power has been granted to the President in matters of autonomous districts of Meghalaya, Tripura and Mizoram.
• Article 240: The President can make regulations regarding the Union territories of Andaman and Nicobar and Lakshadweep. It will have the same force as an act of Parliament; such regulations can also repeal laws made by the Parliament in that relation.

Distribution of Legislative powers (Subjects)

The distribution of the subject list between the Centre and the State has been taken from the Government of India Act 1935. They are as follows:

1. Union List
2. State List
3. Concurrent List

1. Union List

• Currently, the Union List contains 99 (Originally 97) subjects over which the Parliament has exclusive powers.
• These subjects are of national importance and demand uniformity all over India, such as defence, foreign affairs, communication, currency, atomic energy, etc.

2. State List

• The state list comprises 61 (Originally 66) subjects over which states have exclusive powers to make laws.
• These subjects are of local and regional importance, such as police, public order, public health, etc.

Related FAQs of Centre State Relations

What do Centre-State Relations mean in India?

Centre-State Relations in India refer to the distribution of powers and responsibilities between the Central Government and State Governments. These relations are categorized into three types: Legislative, Administrative, and Financial, ensuring both coordination and autonomy within India’s federal structure.

How are legislative powers divided between the Centre and States?

Legislative powers are divided into three lists: (1) Union List — only Parliament can legislate (e.g., Defence, Foreign Affairs); (2) State List — only State Legislatures can legislate (e.g., Police, Public Order); (3) Concurrent List — both Centre and States can legislate, but Centre’s law prevails in case of conflict. Residuary powers rest with the Centre.

What are Administrative Relations between the Centre and States?

Administrative Relations define how executive powers are distributed. While States have executive authority in their domain, the Centre can issue directions to States on matters like national infrastructure, tribal welfare, and during emergencies. The Centre can also delegate certain powers to States with their consent.

How is financial power shared between the Centre and the States?

The Constitution divides taxation powers. The Centre controls major taxes like Income Tax and GST on inter-state trade, while States levy taxes like land revenue and excise on liquor. Revenue is shared based on the Finance Commission’s recommendations. Grants-in-aid and GST Council ensure fiscal balance.

Can the Centre interfere in State matters?

Yes, under specific circumstances like National Emergency (Article 352), President’s Rule (Article 356), or Financial Emergency (Article 360), the Centre can assume greater control over States. It can legislate on State subjects, direct financial management, and even alter revenue sharing temporarily.