Indian Polity Quiz: Centre – State Relations | 7 June, 2021

In 1969, the Tamil Nadu Government (DMK) appointed a three-member committee under the chairmanship of Dr P V Rajamannar to examine the entire question of Centre–state relations and to suggest amendments to the Constitution so as to secure utmost autonomy to the states.

The committee submitted its report to the Tamil Nadu Government in 1971.

Source: Laxmikanth

Article 263 contemplates the establishment of an Inter-State Council to effect coordination between the states and between Centre and states.

• Thus, the President can establish such a council if at any time it appears to him that the public interest would be served by its establishment.
• He can define the nature of duties to be performed by such a council and its organization and procedure.

Source: Laxmikanth

In pursuance of the recommendations of the Sarkaria Commission, the Janata Dal Government headed by V. P. Singh established the Inter-State Council in 1990.

The council is a recommendatory body on issues relating to inter-state, Centre–state and Centre–union territories relations.

It aims at promoting coordination between them by examining, discussing and deliberating on such issues. Its duties, in detail, are as follows:

• investigating and discussing such subjects in which the states or the Centre have a common interest;
• making recommendations upon any such subject for the better coordination of policy and action on it; and
• deliberating upon such other matters of general interest to the states as may be referred to it by the chairman.

Source: Laxmikanth

The Second commission on Centre-State Relations was set-up by the Government of India in April 2007 under the Chairmanship of Madan Mohan Punchhi, former Chief Justice of India.

It was required to look into the issues of Centre-State relations keeping in view the sea-changes that have taken place in the polity and economy of India since the Sarkaria Commission had last looked at the issue of Centre-State relations over two decades ago.

Source: Laxmikanth

Article 275 empowers the Parliament to make grants to the states which are in need of financial assistance and not to every state.

• Also, different sums may be fixed for different states. These sums are charged on the Consolidated Fund of India every year.
• Apart from this general provision, the Constitution also provides for specific grants for promoting the welfare of the scheduled tribes in a state or for raising the level of administration of the scheduled areas in a state including the State of Assam.
• The statutory grants under Article 275 (both general and specific) are given to the states on the recommendation of the Finance Commission.

Source: Laxmikanth

The power to make laws with respect to residuary subjects (i.e., the matters which are not enumerated in any of the three lists) is vested in the Parliament.

• This residuary power of legislation includes the power to levy residuary taxes.

• From the above scheme, it is clear that the matters of national importance and the matters which require uniformity of legislation nationwide are included in the Union List.
• The matters of regional and local importance and the matters which permit diversity of interest are specified in the State List.
• The matters on which uniformity of legislation throughout the country is desirable but not essential are enumerated in the concurrent list. Thus, it permits diversity along with uniformity.

Source: Laxmikanth

Article 280 provides for a Finance Commission as a quasi-judicial body. It is constituted by the President every fifth year or even earlier.

It is required to make recommendations to the President on the following matters:

1. The distribution of the net proceeds of taxes to be shared between the Centre and the states, and the allocation between the states, the respective shares of such proceeds.
2. The principles which should govern the grants-in-aid to the states by the Centre (i.e., out of the Consolidated Fund of India).
3. The measures needed to augment the consolidated fund of a state to supplement the resources of the panchayats and the municipalities in the state on the basis of the recommendations made by the State Finance Commission.
4. Any other matter referred to it by the President in the interests of sound finance.

Source: Laxmikanth

In 1983, the Central government appointed a three-member Commission on Centre–state relations under the chairmanship of R S Sarkaria, a retired judge of the Supreme Court.

• The commission was asked to examine and review the working of existing arrangements between the Centre and states in all spheres and recommend appropriate changes and measures.
• It was initially given one year to complete its work, but its term was extended four times.
• The Commission did not Favour structural changes and regarded the existing constitutional arrangements and principles relating to the institutions basically sound.
• But it emphasized on the need for changes in the functional or operational aspects. It observed that federalism is more a functional arrangement for co-operative action than a static institutional concept.

Source: Laxmikanth

The Zonal Councils are the statutory (and not the constitutional) bodies.

• They are established by an Act of the Parliament, that is, States Reorganization Act of 1956.
• The act divided the country into five zones (Northern, Central, Eastern, Western and Southern) and provided a zonal council for each zone.
• While forming these zones, several factors have been taken into account which includes: the natural divisions of the country, the river systems and means of communication, the cultural and linguistic affinity and the requirements of economic development, security and law and order.

Source: Laxmikanth

The Zonal Councils are the statutory (and not the constitutional) bodies. They are established by an Act of the Parliament, that is, States Reorganization Act of 1956.  

• The act divided the country into five zones (Northern, Central, Eastern, Western and Southern) and provided a zonal council for each zone.  
• In addition to the above Zonal Councils, a North-Eastern Council was created by a separate Act of Parliament—the North-Eastern Council Act of 1971. 
• Its members include Assam, Manipur, Mizoram, Arunachala Pradesh, Nagaland, Meghalaya, Tripura and Sikkim. Its functions are similar to those of the zonal councils, but with few additions. 

Source: Laxmikanth