General Studies – 2

 (Governance, Constitution, Polity, Social Justice and International Relations)

  • Indian Constitution—Historical Underpinnings, Evolution, Features, Amendments, Significant Provisions and Basic Structure.

  • Functions and Responsibilities of the Union and the States, Issues and Challenges Pertaining to the Federal Structure, Devolution of Powers and Finances up to Local Levels and Challenges Therein.

  • Separation of Powers between various organs Dispute Redressal Mechanisms and Institutions.

  • Comparison of the Indian Constitutional Scheme with that of Other Countries.

  • Parliament and State Legislatures—Structure, Functioning, Conduct of Business, Powers & Privileges and Issues Arising out of these.

  • Structure, Organization and Functioning of the Executive and the Judiciary—Ministries and Departments of the Government; Pressure Groups and Formal/Informal Associations and their Role in the Polity.

  • Salient Features of the Representation of People’s Act.

  • Appointment to various Constitutional Posts, Powers, Functions and Responsibilities of various Constitutional Bodies.

  • Statutory, Regulatory and various Quasi-judicial Bodies.

  • Government Policies and Interventions for Development in various sectors and Issues arising out of their Design and Implementation.

    Development Processes and the Development Industry — the Role of NGOs, SHGs, various groups and associations, donors, charities, institutional and other stakeholders.

  • Welfare Schemes for Vulnerable Sections of the population by the Centre and States and the Performance of these Schemes; Mechanisms, Laws, Institutions and Bodies constituted for the Protection and Betterment of these Vulnerable Sections.

  • Issues Relating to Development and Management of Social Sector/Services relating to Health, Education, Human Resources.

  • Issues relating to Poverty and Hunger.

  • Important Aspects of Governance, Transparency and Accountability, E-governance- applications, models, successes, limitations, and potential; Citizens Charters, Transparency & Accountability and institutional and other measures.

  • Role of Civil Services in a Democracy.

  • India and its Neighborhood- Relations.

  • Bilateral, Regional and Global Groupings and Agreements involving India and/or affecting India’s interests.

  • Effect of Policies and Politics of Developed and Developing Countries on India’s interests, Indian Diaspora.

Important International Institutions, agencies – their Structure, Mandate.

Constitutional Framework

  • Historical Background – Company Rule, Crown Rule and Independence Act.
  • Making of Constitution.
  • Salient Features of the Constitution.
  • Preamble of the Constitution.
  • Union and its territories.
  • Citizenship
  • Fundamental Rights.
  • Directives Principles of state policy.
  • Fundamental Duties.
  • Amendment of Constitution.
  • Basic Structure of Constitution.

System of Government

  • Parliamentary System.
  • Federal System.
  • Centre State Relation.
  • Inter State Relation.
  • Emergency Provisions.

 

Union Government

  • President
  • Vice – President.
  • Prime Minister.
  • Central Council of Minister
  • Cabinet Committees.
  • Parliament
  • Parliamentary Committees, Forum, Groups.
  • Supreme Court.
  • Judicial Review.
  • Judicial Activism.
  • Public Interest Litigation.

 

State Government

  • Governor 
  • Chief Minister.
  • State Council of Ministers.
  • State Legislatures.
  • High court.
  • Tribunals
  • Subordinate Courts.
  • Special Provisions for Some states.

Local Government

  • Panchayati Raj and Municipal Corporation

Union Territories and Special Areas

  • Union Territories.
  • Scheduled and Tribal Areas.

Constitutional Bodies

  • Election Commission
  • UPSC
  • SPSC
  • Finance Commission
  • Goods and Services Tax Council.
  • National Commission for SCs.
  • National Commission for STs.
  • National Commission for OBCs.
  • Special Officer for Linguistic Minorities.
  • Comptroller and Auditor General of India.
  • Attorney General of India.
  • Advocate General of India.

Non-constitutional Bodies

  • NITI Aayog.
  • NHRC – National Human Right Commission.
  • State Human Rights Commission.
  • Central Information Commission.
  • State Information Commission.
  • Central Vigilance Commission.
  • Central Bureau of Investigation.
  • Lokpal and Lokayuktas.
  • National Investigation Agency.
  • National Disaster Management Authority.

Other Constitutional Dimensions

  • Co-operative Societies.
  • Official Language.
  • Public Services.
  • Rights and Liabilities of the Government.
  • Special Provisions Relating to Certain Classes.

Political Dynamics

  • Political Parties.
  • Role of Regional Parties.
  • Elections
  • Election Laws.
  • Electoral Reforms.
  • Voting Behaviour.
  • Coalition Government.
  • Anti-Defection Law.
  • Pressure Groups.
  • National Integration
  • Foreign Policy.

Working of the Constitution

  • National Commission to Review the Working of the Constitution.
  • British came to India as traders in 1600 in form of East India Company. 
  • Company has exclusive right to trade with India under a charter granted by Queen Elizabeth 1.
  • In 1765, Company got Diwani Rights of Bengal, Bihar and Orissa, hence changes its character from trading to territorial power in India.
  • From 1765 to 1857, Regulations were made to control the trading activities and expansionism. 
  • In 1858, Sepoy mutiny or First War of Independence happened, involving leaders like Rani Laxmi bai from Gwalior, Mangal Pandey etc.
  • From 1858 to 1947, Crown rule imposed, and rules were made to govern Indian Territory from Britain.
  • Gradually, with awakening of sense of national pride, Freedom struggle started and watch many phases.
  • Indian freedom struggle is divided into many phases i.e. Liberal, Moderate, Extremism phase, Gandhian, Revolutionary etc.
  • In 1947, India got Independence with Enactment of India Independence Act of 1947.
  • A constituent Assembly was formed in 1946 and on 26 January, 1950 Constitution of India came into being.
  • So, we can say that Indian Constitution and Polity, have roots in British rule that laid down the fundamental legal framework of India.
  • Such Events have greatly influenced Indian Constitution and we will study gradually them.

Regulating Act of 1773

  • Regulating Act of 1773
  • Designated Governor of Bengal as Governor General of Bengal. Lord Warren Hasting was first Governor General.
  • Created an Executive Council of 4 members to help the Governor-General of Bengal.
  • Governor of Madras and Governor of Bombay subjugated under GG of Bengal.
  • Establishment of Supreme Court of India. Lord Impey was first Chief Justice.
  • Prohibited Company servants in any private trade, accepting bribes from natives.
  • A Governing body was formed i.e. Court of Director to strengthened control of British Government over company affairs. 
  • Now, Company had to report on revenue, civil and military affairs to Court of Directors in India.
 Importance of Act
  •  Recognized political and administrative function separately of company.
  • Initiation of Centralization in India and hence laid foundation of Centralization.

 Amending act of 1781

   This Act was implemented to rectify the defects of Act of 1773. Also known as Act of Settlement
  • Exempted Governor-General from Jurisdiction of Supreme Court and also his servants for their official actions.
  • Provided that Supreme court only to have jurisdiction over people of Calcutta.
  • Hindus govern by Hindus Laws and Muslim by Mohammedan laws.
  • Empower Governor General in Council to frame regulations for Provincial Courts and Councils.

Pitts India Act of 1784

  •  Distinguished Commercial and political functions of Company.
  • Allowed Court of Directors to manage commercial affairs.
  • Created Board of Control to administer political, civil and military functions.
This Act was remember for two reasons:
  •  Company territories called British possessions in India.
  • British Government given supreme control over Company affairs.

Act of 1786

  •  Lord Cornawallis was approached to become the Governor-General of Bengal, he requested 2 conditions to accept the position.
  • Power to override the Executive council decision
  • Supreme Commander in Chief of Military.
Both conditions were accepted under this Act of 1786.
 

Charter Act of 1793

  •  Powers provided to Lord Cornawallis was extended to all future’s governors.
  • Sub-ordination of all governors and presidencies.
  • Extension of Trade monopoly for another 20 years.
  • Board of Control and their staff will be paid out of revenue from India.

Charter Act of 1813

  • Abolished the trade monopoly with India. However, TEA Trade monopoly retained with China.
  • Asserted the Crown sovereignty and authority over EIC.
  • Christian missionaries permitted.
  • Provision of spreading western education in India.
  • Authorized local government to levy the taxes in India and punish for not paying taxes.

 Charter Act of 1833

  •  General Governor of Bengal referred as General Governor of India. All Civil and military powers were vested in him.
  • Centralization of Government, Created a Central Government that has authority over all India.
  • Deprived Governor of Bombay and Madras of their power and made sub-ordinate to Governor General of Bengal.
  • Changed nature of EIC from commercial to politico-adminsitrative.
  • Attempted to establish a System of open recruitment for civil servants and stated that India should not be debarred from exam. However, Board of Director opposed it.  

Charter Act of 1853

  •  Last series of Charter act and hence significant constutional landmark.
  • Legislative and Executive functions are separated – 6 members Indian Legislative Assembly was established.
  • Introduced Open Competition system of civil servants for Indian.
  • Covenanted Civil Services was thrown open to Indians. Accordingly, the Macaulay Committee ( Committee on India Civil Services ) was appointed in 1854.
  • Extended Company Rule and allowed it to retain the possession of Indian Territories on trust of British Crown. It did not specify the any particular period.
  • Introduced Local Representation in Indian Legislative Council. – 
  • Total 6 members – 4 members were appointed by provincial Governments of Madras, Bombay and Bengal and Agra.
 

Good Government of India, 1858

  •  Abolished EIC and transferred power to Government, Territories, revenues to British Council.
  • Designation of Governor -General of India changed to Viceroy of India.
  • Act created a new office in Britain i.e. Secretary of State for India ( Complete Authority over India Administration).
  • Secretary of State is member of British Cabinet and was responsible to British parliament.
  • 15 member council to assist the Secretary of State. Council was advisory nature. Secretary of State was chairman of Council of India.
  • It ended the system of Dual Government. Eliminated the Court of Directors and Board of Control.
  • This act focused on administration reform just to control the Indian Territories.

Indian Council Acts of 1861

  • Beginning of representational institution via nominations by viceroy as non-official members.
  • Lord Canning appointed the Raja of Banaras, Maharaja of Patiala and Sir Dinkar Rao.
  • Restored legislative powers of Bombay and Madras Presidencies ( Reversal of central tendencies).
  • New Legislative Councils were made –  Punjab, North Western Frontier Province, Bengal.
  • Viceroy  made rules for convenient transaction of business of house.
  • Portfolio System  – Viceroy was in-charge of same. He can issue final order on behalf of a department.
  • Ordinance making power to Viceroy and it’s validity for 6 months.

Indian Council Act of 1892

  •  Increased Non-official members of Indian Legislative council and provincial legislative councils. However, official majority remains.
  • Increased functions of legislative councillors  like Discussing budget provisions.
  • Nominations of some non-official members :
  • Central Legislative council – Recommendation of Provincial legislative councils and Bengal chamber of                                  commerce
  •    Provincial legislative council – Recommendation of district boards, municipalities, universities, trade associations, zamindars and chambers.
  •  Act made limited and indirect provision for use of election in filling non-official seats.

Indian Council Act of 1909

  •  Also called Morley-Minto Reforms.
  • Morley – Secretary of State of India.
  • Minto – Viceroy of India.
  • Increased Number of Non-Official members in Provincial Legislative council, not in Indian Legislative council.
  • Power of Indian Legislative councillors were increased – Budget and supplementary questions.
  • Association of Indian in viceroy’s Executive council – Satyendra Prasad Sinha.
  • Introduced System of Communal Representation for Muslim  (Start of communalism).
  • Lord Minto – Father of Communal Electprate. 
  • Separate Representation for presidency corporation, Bengal Chamber of Commerce, universities and Zamindars.

Government of India Act, 1919

  •  20 August, 1917  : British Government declared that gradual introduction of responsible Government in India
  • Also called Chelmsford-Montagu reform act, 1919.
  • Relaxed control over provinces -> Two Subject List  -> Central and Provincial list.
  • Again in Provinces –  two subjects -> Transferred (Governor with help of council of minister) and Reserved (Governor and his executive council).
  • Above System is called Dyarchy (Two Subject list) 
  • Bi-cameralism and direct election in country
  • Indian Legislative council replaced by Upper house and Lower House.
  • 3 out of 6 members of Executive Council of Viceroys.
  • Extension of Communal representation -> Sikhs, Anglo-Indians and Europeans.
  • Granted Limited Franchise to vote based on Property, Education and tax.
  • Created new office of  Commissioner to support secretary of State of India.
  • Separated Provincial and Central Budget.
  • Provinces can make budgetary provision independently.
  • Appointment of statutory commission for reviewing and reporting on working of 1919 Act after 10 years.

Simon Commission

  •  November,  1927 (2 years before schedule) – Britain Government made 7 British member commission under Sir John Simon to report on Condition of India under new Constitution.
  • Submitted its report in 1930.
  • Recommended  – Abolition of Dyarchy, Extension of Responsible Government, Establishment of Federation of British India and Princely states, Continuity of communal electorates.
  • To consider Simon Commission, British Government conveyed 3 round table conferences to discuss “White paper on Constitutional Reforms”  and Submitted to joint Select Committee of British Parliament. 
  • Recommendation were incorporated in 1935 Act.

Communal Award

  • August 1932 – Ramsay MacDonald announced the scheme of representation for minorities called Communal Award.
  • Separate Electorates for Depressed class.
  • Gandhi opposed idea, took fast unto to death in Yerawada Jail.
  • Agreement – Congress and B.R. Ambedkar signed POONA PACT.
  • POONA PACT – Reserved Seats for Depressed Class.

Government Act of Indian Act, 1935

  • Federation of Princely states, British Territories in India. Federation never came to existence as princely state oppossed it.
  • Two Subject list  – Provincial and Federal List
  • Residuary power to viceroy.
  • Abolition of Dyarchy in Provinces. Provinces allowed to act as autonomous units of their administration in their defined spheres.
  • Act introduced responsible Government in provinces.
  • Governor to act on advice of Council of Ministers responsible to Legislature.
  • Came to Effect – 1937, discontinued in 1939.
  • Provided adoption of diarchy a Centre. This Feature did not came into effect.
  • Introduced Bi-cameralism in 6 out of 11 provinces.
  • Extended Principal of Communal Electorates for depressed Class, Women and Labours.
  • Extended Franchise – About 10% of total population get voting rights.
  • Establishment of Reserve bank of India – Control and Credit of Currency.
  • Establishment of Federal Public Services, Provincial Public Services and Joint Public Services.
  • Establishment of Federal Court which was set up in 1937.

Indian Independence Act, 1947

20 February 1947, British PM Clement Atlee declared that British rule in India would end by June 30, 1948.
Power transferred to Responsible Indian Hands
Muslim League demanded Partition of Indian based on two nation Theory and agitated on 3rd June, 1947
3 June 1947 – Lord Mount Batten (Viceroy of India) created Mount Batten Plan(Partition Scheme)
Plan was adopted by Congress and Muslim League and Immediate Effect was given to plan as Indian Independence Act.
 
Features of Act:
  • Ended British Rule in India, Declared India Independent and Sovereign from 15 August, 1947.
  • provided partition of India into two independent dominions.
  • Abolished Viceroy and it’s Council.
  • Governor General Appointment by British King on Recommendation of Dominion Cabinet. British Government has no responsibility with respect to two Dominion Governments.
  •  Empowered Constitution Assemblies to make their Consititution, repeal any act, make any act.
  • Abolished Office of Secretary of State of India and transferred his function to Secretary state for Common Wealth Affairs.
  •  Proclaimed lapse of British Paramountcy over Indian Princely state and treat relations with Tribal areas from August 15, 1947.
  • Granted freedom to Princely state – Either join Any Dominion or remain independent.
  • Provided Governance of Each Dominion with Act of 1935, Until new Constitution is not formed.
  • Deprived British Monarch to Veto or ask for reservation of Certain Bills (Governor General has full Power to assent to any bill in his name of his majesty).
  • Dropped Title of Emperor of King from Royal Titles of King of England.
  •  Discontinued – Appointment to Civil Services, But Employed servant will have no impact on their jobs.
  • Designated Nominal Head of Government – Governor General /  Governor.
At Stroke of Midnight 14-15 August, 1947, British Rule came to an end and Power transferred to Dominion of India.
Lord Mountbatten becomes first Governor general of Independent Dominion of India.
First Prime Minister : Pandit Jawaharlal Nehru
Constituent Assembly that formed in 1946 acted as Temporary Parliament.

Center State Relations

Constitution of India, being in federal in structure, divides all power i.e. legislative, executive, Financial. We have integrated Judiciary to enforce central and state laws.

Center and states are supreme in their respective fields, the harmony and co-ordination is essential for effective operation of federal system.

Center and State relation are studied in 3 ways:

1. Legislative Relations.

2. Administrative Relations.

3. Financial Relations.

Legislative Relations

  • Article 245 to 255 in Part 6 of Indian Constitution defines relation between Centre and states.
  • Like Federal constitution, Indian constitution also divides power between Centre and the states with respect to territory and subjects of legislations.
  •  Four aspects to study Centre-States relations:
    1. Territorial extent of Centre and the states.
    2. Distribution of legislative subjects.
    3. Parliamentary legislation in the state field.
    4. Centre’s control over state legislation.

 1. Territorial Extent of Central and State legislation

  •  Centre can make laws for any part of Territory of India while states, union territories can make laws for their own territory.
  • Parliament can also make “extra-territorial” laws that are applicable to NRIs and their properties abroad.

However, Parliament laws are not applicable in the following areas:

  1.  Presidents make regulations for peace, progress and good governance of 5 Union Territories – Andaman Nicobar Islands, Lakshadweep, Dadra and Nagar Haveli, Daman and Diu and Ladakh . Regulation will have same effect like parliament law. It can repeal or amend any law of Parliament in relation to these Union Territories.
  2. Governor is empowered to direct that an act of Parliament is not applicable for Scheduled Areas in State or apply with specified modifications and exceptions.
  3. Governor of Assam may likewise direct that an Act of Parliament does not apply to a tribal area (Autonomous District) in state or apply with restrictions/ modifications / exceptions.
  4. President enjoys same power mentioned in point 3 with respect to tribal areas in UT i.e. Autonomous districts in Meghalaya, Tripura and Mizoram.

2. Distribution of Legislative Subjects

  •  Constitution provide 3 Lists in Seventh Schedule:
    1.  List 1 – Union List – National Importance, Subjects that require uniformity,
    2. List 2 – State List – Regional and local importance that permits diversity of Interest.
    3. List 3 – Concurrent List – Matters that require uniformity of legislation as desirable not essential.
  • Union List has 98 Subjects (Originally 97) – Parliament has exclusive powers over subjects like Defence, communication, Foreign policy, currency, insurance, inter-state trade and relations,  commerce, Audit and so-on.
  • State List has 59 Subjects (Originally 66) – State Legislature has powers to legislate over 59 subjects like public order, police, prisons, local governance, fisheries, markets, theatres, gambling etc.
  • Concurrent List – Both Centre and State can make laws. However, if Central Government makes a law on a subject , the it shall prevail and override the state laws. Total 52 Subjects (Originally 47) like Criminal and civil laws, population control, labour welfare, divorce, family planning, electricity, economic and social planning, newspaper, books, printing press etc. 
  • 42 Constitutional Amendment Act, 1976 – Transferred 5 subjects from state list to Concurrent List.
    1. Education
    2. Forests
    3. Weights and measures
    4. Protection of Wildlife, animals, birds
    5. Administration of Justice, Constitution and organization of all courts expect Supreme and High Courts.
  • Powers to make laws with respect to Residuary powers is vested in Parliament.
  • 101th Constitution Amendment Act, 2016 made a special provision with respect to Goods and Services tax. Both parliament and State legislature has power to make laws with respect to goods and services. however, In case of Inter-State trade, Power lies with Union Government.
  • Constitution expressly secures the dominance of the Union List over the state List and Concurrent List and Concurrent List over State List.
    • Union List vs State List -> Union List prevails.
    • Union List vs Concurrent List  –> Union List.
    • Concurrent List vs State List –> Concurrent List.
    • State law will always subdued by Union Laws, Exception is if State reserved a bill for President consideration, then only state law prevails.
    • However, Union Govt. can nullify this act by making law in future.
NOTE: 
Government of India Act, 1935 contained provision to divided subjects as Federal, provincial and Concurrent. Present Constitution follows the same division.

Only difference was, earlier power to make laws on residuary subjects lies with Governor General. Now power lies with Centre or Union Goverment.

India follows such division based on CANADIAN CONSTITUION.
 

3. Parliamentary Legislation in the state field

Above legislative instruments are maintained in normal times, not in abnormal times like war, financial emergency  etc. Following 5 extraordinary circumstances are mentioned below:
  • When Rajya Sabha passes a resolution declaring in national interest, Parliament should become a competent authority to make laws on state list or goods and service tax. This does not take away power of state to make laws on state subject. However, in case of conflicts, Union law will prevail. Such laws are permissible for 1 year and can be renewed n times and for 1 year. The Law cease to have effect on expiration of six months after resolution has ceased to be in force.
  •  During National Emergency, Parliament has power to legislate over state list. Laws become inoperative on expiration of 6 months after the emergency ceases to operate. Also, Power of state to make laws is not restricted. However, incase pf repugnancy between a state and parliamentary law, Parliamentary law prevails
  • When States Make a Request
    •  Legislature of two or more states passes resolution to enact laws on a matter in state list.
    • Laws applied to specific states(Who passes resolution).
    • However, Other states can adopt the law by passing resolution also.
    • Such laws are amended or repealed by Parliament, not by State Legislatures.
    • Resolution operates as abdication or surrender of the power of state legislature with respect to that subject.
    • Examples:
      1.  Prize Competition Act, 1955.
      2. Wildlife Protection Act, 1972.
      3. Water (Prevention and Control of Prohibition) Act, 1974.
      4. Urban Land (Ceiling and Regulation ) Act, 1976.
      5. Transplantation of Human Organs Act,  1994.
  • To Implement International Treaties and Acts: Parliament has power to make laws on state list subjects to enact international treaties, laws, conventions etc.
    •  United Nations (Privileges and Immunities ) Act, 1947.
    • Geneva Convention Act, 1960.
    • Anti-Hijacking Act,  1982.
    • Legislation related to environment and TRIPS.
  • During President’s Rule: When President’s rule is imposed in a state, Parliament becomes empowered to make laws with respect to State List. A law made by Parliament continues to be operative even after the president’s rule. This rule is not conterminous with the duration of President Rule. But such law can be repealed or altered or re-enacted by the State Legislature.

 4. Centre’s Control over State Legislation

Besides the power to legislate over state list in extra-ordinary situations, Constitution empowers the Centre to exercise control over the state’s legislative matters in the following ways:
  •  Governor can reserve certain bills for consideration for President and President enjoys the Veto over such subjects or bills.
  • Bills on certain Subjects mentioned in state List, must be introduced with prior permission of President. Example: Bills imposing restrictions on the freedom of trade and commerce.
  • During Financial Emergency, Centre can direct the states to reserve the money bills and other financial bills, for President’s consideration 
Constitution has places Centre above than state in legislative sphere.
 
Sarkaria commission (1983-88): The Rule of federal supremacy is a technique to avoid absurdity, resolve conflict and ensure harmony between the Union and state laws.
 
 

Administrative Relations

Article 256  to 263 in Part 11 of the Constitution deals with the administrative relations between the Centre  and the states. Various domains are mentioned below:
  •  Distribution of executive powers.
  • Obligation of States and the Centres.
  • Centre’s Directions to the states.
  • Mutual Delegation of Functions.
  • All India Services.
  • Public Service Commission.
  • Integrated Judicial System.
  • Relations During Emergencies.
  • Other Provisions.
  • Extra-Constitutional Devices.

1.Distribution of Executive Powers

  •  Executive powers are also divided between Centre and the states. Executive Power of the Centre extends to the whole of India in few cases:
    1.  Matters on which Parliament has exclusive power of legislation.
    2. Exercise of rights, authority and jurisdiction conferred on it by any treaty or agreement.

2.Obligations of States and Centre

Constitution has placed two restrictions on States in order to give ample space to Centre:
  • States can makes laws in compliance with Union Laws which apply to state.
  • as not to impede or prejudice the exercise of executive power of the Centre in state.

Formal imposes general obligation, while later imposes specific restrictions.

Article 365: Any State has failed to Comply with any direction given by Centre, it will be lawful for the President to hold that a situation has arisen in which the government of state cannot carried on in accordance with the provisions of the Constitution.

Invocation of PRESIDENT RULLE (Article 368)

3. Centre’s Direction to State

In addition to above two cases, Centre can give directions to the states with regard to the exercise of their executive power in the following manner:
  •  Construction or maintenance of means of communication – National and Military set up  – Declared by state.
  • Measures to be taken for the protection of railways within state.
  • Provisions of adequate facilities for instruction in mother tongue at primary education to children belonging to linguistic minorities.
  • drawing up and execution of the specified schemes for Welfare of Schedule tribes.

Coercive sanction behind the Central directions under Article 365 ( mentioned above ) is also applicable in these cases.

4. Mutual Delegation of Functions

Constitution of India defines area of execution of powers for both – Union and State. Centre cannot delegate its power to state and a single state cannot ask to make laws for itself. This is Rigid division.

Such Rigid division occasionally cause conflicts, hence  Constitution also provides for inter-governmental delegation of powers in order to mitigate and avoid situation of conflict or deadlock.

  • President may, with consent of State Government, entrust to that government any of executive functions of the Centre.
  •  The Governor of State, with the consent of Central Government, entrust any state government function.
This mutual delegation of administrative functions may be conditional or unconditional.
  • Constitution also provide mechanism to entrust some Centre power to State without consent of state. Delegation is done  by Parliament, not by state.
  • Law made by Parliament on a subject of Union List can confer powers and impose duties on a state or authorize the conferring of powers and duties (tax) on state.
  • Same powers do not lies with State.
 Hence, Mutual delegation can take place either by Legislation or an agreement. Centre can use both method, while States can use only by agreement.
 

 5. Cooperation between Centre and States

  •  Parliament can provide for adjudication of any dispute or complaint with respect to the use, distribution and control of waters of any inter-state river and river valley.
  • President can set up a inter-state council under article 263 to investigate and discuss subject of common interest between Centre and the states. Such a council was set up in 1990.
  •  Full faith, credit given throughout the territory of India to public acts, records and judicial proceedings of the Centre and every state.
  • Parliament can appoint an appropriate authority to carry out the purposes of Constitutional provisions relating to interstate freedom of trade, commerce and intercourse. But no such authority is appointed so far.

6. All India Service

  • Centre and State has both separate public services. In Addition, India has All India Services – IAS, IPS, IFS. Members of such services occupy the top positions under state or central government.
    These services are controlled jointly by Centre and state, yet Central control prevails.
  •  These Services violate principle of federalism under constitution by restricting the autonomy and patronage of the states
    •  Help in Maintaining high standards of administration in the Centre and states.
    • Uniformity of administrative system through out the country.
    • Facilitate Liaison, cooperation, co-ordination and joint action on the issues of common interest between Centre and States.
  • Dr B R Ambedkar : The Dual Polity which is inherent in a federal structure, is followed in all federations by dual services.
  • So All India Services shows strategic positions require through out the union.

7. Integrated Judicial System

  • Single System of Courts and all Courts act as room of records.
  • Appointment of High Court on Consultation of Supreme court’s Chief Justice and Governor. – President (Transfer and Removal by President also)
  • Parliament can make Single Shareable High Court for two or more states.

 8. Public Service commissions

  • Chairman and members of a state public service commission, appointed by Governor, but removed by President.
  • Parliament can establish a joint  Public Services Commission.
  • UPSC can serve needs of state on request of State Governor and with approval of President.
  • UPSC assists the states (When Requested by two or more states) in framing and operating schemes of joint recruitment for services for which candidates possessing special qualifications are required.

9. Relations During Emergencies

  •  National Emergency (Article 352) : Center becomes entitled to give executive directions to a state on any matter. State Government under complete control
  • President’s Rule (Article 356): President can assume to himself the functions of the state government and power vested in the Governor or any other executive authority in state.
  • Financial Emergency (Article 360): Centre can direct states to observe financial discipline, Reduce salaries and allowances and can Control State financial  decisions.

 10. Other Provisions

  •  Article 355 : Centre has two duties
    •  To protect every state against external aggression and internal disturbance.
    • To ensure that Government of every state is carried in accodance to Constitution of India.
  •  Governor is appointed by President. He holds office during pleasure of President. Governor, act as a agent and constitutional head and also submits periodically reports.
  • State Election Commissioner is appointed by Governor, but removed by President.

11. Extra-Constitutional Devices 

In Addition to above provisions, there are non-constitutional devices to promote co-operation and co-ordination between Centre and the States – Councils and Conferences.

Non-Constitutional Advisory bodies: NITI Ayog, National Integration Council, Central  council of Health and family welfare, Central Council of local government, Zonal Councils, North Eastern Council, Central Council of Indian Medicine, Central Council of Indian Homeopathy, Transport Development Council, University Grants Commission etc.

Important Conferences: 

  •  Governor’s Conference (President Presides).
  • Chief secretaries conference (Cabinet Secretaries presides).
  • Conference of inspector-general of police 
  • Chief Justices conference (CJI)
  • Conference of vice chancellors.
  • Home Minister’s Conferences (Union home minister)
  • Law Minister Conference (Union Law Minister)

Financial Relations

Article 268 to 293 in Part 12 of Indian Constitution deal with Centre-State financial relations. There are other provisions also, can be studied under various domains.

  1.  Allocation of Taxing powers.
  2. Distribution of tax revenue.
  3. Distribution of Non-tax Revenue.
  4. Grants-in-Aid to the states.
  5. Goods and Services Tax Council.
  6. Finance Commission.
  7. Protection of States’ Council.
  8. Borrowing by the Centre and States
  9. Inter-Governmental tax Immunities.
  10. Effect of Emergencies.

 Allocation of Taxing power

Centre divides the taxing powers between Centre and states as follows:

  •  Parliament has exclusive power to levy tax over subjects of Union List – 13 in number
  • State Legislature has exclusive power over state list – 18 in number.
  • No tax entries in the concurrent list. Concurrent jurisdiction not available with respect to tax legislation. 
  • 101 Constitutional Amendment, 2016 made an exception with respect to goods and service tax. This amendment confer concurrent power upon Parliament and State legislature to make laws governing goods and srevices.
  • Residuary power of taxation lies with Centre i.e. Parliament. Consequently, Parliament imposed gift tax, wealth tax, expenditure tax.
 Constitution has laid distinction between power to levy, collect a tax and power to appropiate the proceeds of collected tax revenue.
Constitution has placed following restriction on states regarding taxing power:
  •  A State legislature can impose tax on profession, trade, calling and employment, but such taxes should not exceed 2500 per annum per person.
  • A state legislature is prohibited from imposing a tax on the supply of goods or services or both in below mentioned cases:
    •  Supply of goods taking place outside the state boundary.
    • Supply taxes place in course of import and export.
    • Parliament is empowered to formulate the principles for determining when a supply of goods and services take place outside the state or in case of import / export.
  • A state legislature impose tax on consumption and sale of electricity
    • Consumed by the Centre or sold to Centre.
    • Consumed in construction , maintenance or operation of any railways by Centre or by Concerned railway company or sold to Centre / company.
  • A State legislature can impose a tax in respect of any water or electricity stored, generated, consumed, distributed or sold by anu authority established by Parliament for regulating or developing any inter-state river or river valley. However, Such law should be reserved for President’s consideration an receive his assent.

 Distribution of Tax Revenue

  •  80th Constitutional Amendment Act of 2000 and 101 Constitutional Amendment Act of 2016 changed the scheme of distribution of tax.
  • 80th Constitutional Amend. act enacted to give effect of 10th Finance commission. Commission recommended that out of certain central tax proceeds, 29 % will go to state. This is know as “Alternative scheme of Devolution”, and enacted retrospectively from 1996 – Corporation tax, Custom Duties etc.
  • 101 Constitutional Amendment Act – Enacted to avoid cascading effect on indirect tax.
    • Amendment provided subsuming various Central taxes like
      1.  Central Excise Duty 
      2. Additional Custom Duty also called Countervailing Duty.
      3. Excise Duty levied under Medicinal and Toilet Preparation (Excise Duties) Act, 1955.
      4. Central Surcharges and Cesses
    • Amendment provided subsuming of state taxes like
      1.  State Value Added Tax / Sales Tax.
      2. Entertainment Tax (Other than taxes levied by local bodies.)
      3. Central Sales tax (Levied by Central Government and collected by the states).
      4. Octroi and Entry Tax.
      5. Purchase tax
      6. Luxury tax
      7. Taxes on lottery, betting and gambling.
      8. State Surcharge and Ceses  etc
    • This Amendment also deleted the Article 269-A and Entry 92 -c, both deals with Service Tax. Service tax was levied by Centre, but collected and appropriate by both Centre and States.
  • After above two amendments, the present tax distribution scheme looks as follows.
  •  Taxes Levied by Centre, but collected And appropriate by the states (Article 268)
    • Stamp duties on bills of exchange, cheques, promissory notes, policies of insurance, transfer of shares.
    • Proceeds of such duties levied within state, cannot become part of consolidate fund of India, assigned to states
  •  Taxes Levied and Collected by Centre, but assigned to states (Article 269)
    •  Taxes on the sale or purchase of goods (Other than newspaper) in course of interstate trade.
    • Taxes on consignment of goods in course of inter-state trade or commerce.
    • Net proceeds of these taxes do not form part of Consolidated fund of India. 
    • Assigned to concerned states in accordance with the principles laid down by Parliament.
  • Levy and Collection of Goods and Service Tax in Course of Inter State Trade or commerce (Article 269-A)
    •  The Goods and Service Tax on supplies in the course of inter-state trade.
    • Levied and collected by Centre.
    • Divide between Centre and State in manner provided by Parliament.
    • Parliament is also authorize to formulate the principles for determining the place of supply of goods or both.
  • Taxes Levied and Collected by Centre, But Distributed between Centre and State (Article 270)
    •  This category includes all taxes and duties referred to in Union List except the following:
      •  Duties and taxes referred to in Articles 268, 269, 269-A
      • Surcharge on taxes and duties referred to in Article 271.
      • Any cess levied for specific purpose.
    • Manner of distribution of the net proceeds of these taxes and duties is prescribed by the President on the recommendation of Finance Commission.
  • Surcharge on Certain taxes and Duties for purposes of Centre(Article 271)
    •  Parliament can any time levy the surcharges on taxes and duties referred to in Articles 269 and 270. The Proceeds of such surcharges go to Centre exclusively.
    • State has no share on such duties and taxes.
    • However, Goods and Service Tax is exempted from this surcharge. 
  • Taxes Levied and Collected and Retained by the states.
    •  These taxes belongs to states exclusively. 
    • Enumerated in state list and 18 in number.
      1.  Land Revenue
      2. Taxes on agriculture income.
      3. Duties in respect of Succession of agriculture land.
      4. taxes on lands and buildings.
      5. taxes on mineral rights.
      6. Duties of excise on alcoholic liquor for human consumption; opium; narcotics; but not medicinal and toilet preparation containing alcohols or narcotics.
      7. Taxes on consumption or sale of electricity
      8. Taxes on sale of petroleum  crude, high speed diesel, moto spirit (Petrol), natural gas, aviation turbine fuel and alcoholic liquor for human consumption, but not including sale in course of inter-state trade or international trade/ commerce.
      9. Taxes on goods and passengers carried by road and inland waterways.
      10. Taxes on vehicles.
      11. taxes on animals and boats.
      12. Tolls.
      13. taxes on professions, trade, callings and emplpyment.
      14. capitation taxes
      15. taxes on entertainment and amusement to the extent levied and collected by a Panchayat/  Municipality/ Regional council/ District Council.
      16. stamp duty on documents (Excepts union list).
      17. fees on matters enumerated in state list
      18. Estate duties in respect to agricultural land;

Distribution of Non-Tax revenue

History and Trends of Centre-State Relations

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