Summary of Sarkaria Commission Report on Center State Relations

Background

Federal theorist K.C. Wheare has argued that the nature of the Indian Constitution is quasi-federal in nature. Due to such nature, few tensions in Center and State relations are bound to arise. The Sarkaria Commission was constituted in 1983 to investigate and give recommendations for a healthy relationship between the Union and the States. It was a three-member commission presided over by Shri RS Sarkaria. The other members of the Sarkaria Commission were Dr. SR Sen and Shri B. Sivaraman.

The recommendations were not binding on the Government. The Supreme Court has frequently emphasized the importance of these recommendations, especially those related to the formation of an Inter-state Council, the appointment of a governor, and Article 356, among others.

The Commission’s goal was to review the existing arrangements between the Union and States as per the Constitution of India in regard to powers, functions, and responsibilities in all spheres (including legislative and administrative relations); Role of Governors; Emergency provisions; Financial relations; Economic and social planning; Panchayati Raj Institutions, Sharing of resources, (including Inter-state river waters) and recommend such changes as may be appropriate keeping in view the practical difficulties.

Major issues in Union and State Relations

• The actions of the Union had led to excessive centralization in various aspects, diminishing the States to mere administrative entities of the Union.
• The Union has extended its reach into the interconnected entries within the State domain, consequently diminishing the legislative authority of the States.
• The Office of Governor has been criticized for being used to destabilize the State Governments run by parties different from that in power in the Union. This has facilitated the imposition of the President’s rule.
• Governors’ decision to frequently reserve many State Bills for the consideration of the President tends to hamper the State Legislature’s law-making process.
• It was highlighted that the emergence of planned development has concentrated all power in
  the hands of the Union, with the Planning Commission acting as a limb of the Union Government (Planning Commission has since been abolished in 2014. However, the issue is still relevant as many State Governments complain about fiscal centralization).
• It was also highlighted that there was a vast expansion in the powers of the Union Government at the expense of the State Governments and local bodies.
• While the intention behind Union-State relations was to operate on the principles of cooperative federalism and consensus in all areas of mutual interest, these ideals have not been effectively implemented. Additionally, the institutions or forums envisioned by the Constitution for facilitating such cooperation and for sorting out problems arising in the working of inter-governmental relations (e.g. a permanent Inter-State Council with a comprehensive charter as contemplated in Article 263) have not been established.

Recommendations

To enable good governance and smooth functioning of Center-State relations, the Sarkaria Commission came up with detailed recommendations:

Consultation with States while Legislating on Matters in the Concurrent List

• List III includes subjects on which both the Union and the States have legislative authority. To foster improved Center-State relations and enhance the effective implementation of laws on List III subjects, it is crucial to establish a broad agreement between the Union and the States before introducing legislation in the Parliament.
• It recommended the establishment of an Inter-State Council to facilitate dialogue and consensus-building between the Union and the States. The Inter-State Council can also play a pivotal role in addressing contentious issues and ensuring coordination between the Union and States on the matters related to Concurrent List.
• The Inter-State Council, if deemed necessary, can employ an independent mechanism such as a Committee of State Ministers. This committee can focus on resolving disputes and reaching a consensus on administrative and fiscal aspects proposed in the legislation.
• The record of proceedings in the Council/Committee including views of States must be made available to Parliament while introducing the Bill on Concurrent List subjects.

Transfer of Entries in the Lists, from List II (State List) to List III (Concurrent List)

• The Commission believes that the Union should occupy only that much of subjects in concurrent or overlapping jurisdiction that is absolutely essential for ensuring uniformity of policy in the evident national interest.

(Note: Certain subjects like Education, Forests, Protection of wild animals and birds had been transferred from the State List to the Concurrent List in 1976 through the 42nd Constitutional Amendment Act).

Management of matters in Concurrent Jurisdiction

• Legislation on matters of concurrent jurisdiction and transferred items from the State List in particular, should be managed through consultative processes on a continuing basis. The Commission recommends a continuing auditing role for the Inter-State Council in the management of matters in Concurrent or overlapping jurisdiction.

Bills reserved for the consideration of the President

• Article 201 empowers the President to assent or withhold assent to a Bill reserved by a Governor for her consideration. If the President returns the Bill with any message, the State Legislature shall reconsider the Bill accordingly within 6 months for presentation again to the President for her consideration.
• The Commission recommended that the period of 6 months prescribed in Article 201 for the State Legislature to act when the Bill is returned by the President can be made applicable for the President also to decide on assenting or withholding assent to a Bill (reserved for her consideration).
• When the President withholds her assent to the State Bills, the reasons should be informed to the State government.

Treaty-making powers of the Union Executive and Center-State Relations

• Article 253 confers exclusive power on the Parliament to make any law for the whole or any part of the territory of India for implementing any treaty, agreement, or convention with other countries or any decision made at any international conference, association, or other body.
• The Commission recommends that Parliament should make a law on the subject of Entry 14 of List I (Entering into treaties and agreements with foreign countries) to streamline the procedures involved.
• The Commission is also of the view that financial obligations and their implications on State finances arising out of treaties and agreements should be a permanent term of reference to the Finance Commission.