Unit 4

Relations between Union and States

The relations between the Union (Central Government) and the States
in India are governed by the distribution of powers, responsibilities, and
resources as outlined in the Indian Constitution. The framers of the
Constitution carefully delineated these relations to establish a federal
structure that ensures a balance of power while maintaining the unity
and integrity of the nation. The key features defining the relations
between the Union and States include:
1. Distribution of Legislative Powers:
 The Constitution divides legislative powers between the
Union and States through three lists: the Union List, the
State List, and the Concurrent List.
 The Union List contains subjects on which only the
Parliament can legislate, the State List contains subjects
within the exclusive domain of the state legislatures, and the
Concurrent List includes subjects on which both can
legislate.
2. Residuary Powers:
 Any matter not explicitly mentioned in the three lists falls
under the residuary powers, and these are vested in the
Union.
 This ensures that in case of ambiguity or new areas of
legislation, the Union has the authority to legislate.
3. Distribution of Executive Powers:
  The executive power of the Union extends to matters on
which Parliament has the power to legislate.
 The executive power of a State extends to matters on which
the State Legislature has the power to legislate.
4. Financial Relations:
 The financial relations between the Union and States are
defined in the form of a division of revenue and taxation
powers.
 The Constitution provides for the appointment of a Finance
Commission to recommend the distribution of net proceeds
of taxes between the Union and States.
5. Emergency Provisions:
 During a state of emergency, whether it is a national
emergency, a state emergency, or financial emergency, the
executive authority of the Union can extend to the states,
altering the normal federal distribution of powers.
6. Inter-State Council:
 To promote cooperation among States and between the
Union and States, the Constitution provides for the
establishment of an Inter-State Council.
 The President can establish such a council to inquire into and
advise upon disputes between states, investigate and discuss
subjects in which some or all of the states, or the Union and
one or more states, have a common interest.
7. Inter-Governmental Committees and Bodies:
  Various inter-governmental committees and bodies are
formed to facilitate coordination and cooperation between
the Union and States on issues such as planning, economic
development, and interstate river water disputes.
8. Role of Governor:
 Governors of states are appointed by the President and act
as a link between the Union and the states. While they
represent the President at the state level, they also play a
crucial role in the administration of the state.
9. Dispute Resolution Mechanisms:
 The Constitution provides for the resolution of disputes
between the Union and States, or among States, through the
judicial process.
 The Supreme Court has original jurisdiction in disputes
between the Union and one or more States or between
States, and it acts as the final arbiter in such matters.
The framers of the Constitution aimed to establish a cooperative
federalism, where both the Union and States work collaboratively to
achieve the common goals of the nation while respecting the autonomy
and individuality of the states. The distribution of powers and the
mechanisms for dispute resolution contribute to the stability and
efficiency of the federal structure in India.
Legislative Powers (Article 245-255):
The legislative powers under the Indian Constitution are delineated to
maintain a delicate balance between the Union and the States. Articles
245 to 255 lay down the framework for the distribution of legislative
authority, ensuring that both levels of government can legislate on
matters within their respective spheres.
Article 245 establishes the supremacy of the Constitution and confers
subject-specific legislative competence on Parliament and the State
Legislatures. The Union Legislature has the authority to make laws for
the entire country on subjects enumerated in the Union List, while State
Legislatures have the power to legislate on matters listed in the State
List.
The Concurrent List includes subjects on which both the Union and
States can legislate. In case of a conflict, the Union law prevails, but the
State law is not invalid if it receives the President's assent. This dual
authority allows for cooperation and coordination between the Union
and States on shared subjects.
Article 246 further specifies the distribution of legislative powers. It
classifies subjects into the Union List, State List, and Concurrent List,
providing a clear demarcation of authority. Additionally, it empowers
Parliament to make laws on any matter in the State List in the national
interest during emergencies.
Articles 248 and 249 grant the Union Parliament residuary powers and
the power to legislate on matters of national importance even if they
fall within the State List during emergencies. Article 250 allows
Parliament to legislate on a State List subject if a resolution is passed by
two or more states authorizing such legislation.
Article 251 addresses the inconsistency in laws between Union and
States on Concurrent List subjects. If a State law is inconsistent with a
Union law that was passed with the President's assent, the Union law
prevails.
Article 252 provides for voluntary delegation of legislative powers to
Parliament by two or more States to make laws on subjects in the State
List that affect them.
In conclusion, the constitutional provisions on legislative powers
establish a comprehensive framework that ensures a smooth
distribution of authority between the Union and States, fostering
cooperative federalism.

Administrative Powers (Article 256-263):

Administrative powers under the Indian Constitution define the
relationship between the Union and the States in matters of
administration and execution of laws. Articles 256 to 263 outline the
principles of cooperation and coordination between the two levels of
government to ensure effective governance.
Article 256 emphasizes the obligation of States to exercise their
executive power in compliance with Union laws and to ensure that
Union executive authorities function in their territories. It establishes a
framework for cooperation and mutual respect in the execution of laws.
Article 257 deals with the deployment of Union forces in States and
provides a mechanism for the use of military or naval forces in the aid
of civil authorities when requested by the Governor or Chief Minister of
a State.
Article 258 allows the Union to entrust functions to States and vice
versa, facilitating administrative cooperation. It also permits the
delegation of executive powers to the Union by a State in specific
situations.
Article 259 addresses disputes arising between the Union and States or
between two or more States regarding the use, distribution, or control
of water or power. The President, on the advice of the Supreme Court,
can direct the implementation of an interstate river water-sharing
agreement.
Articles 260 and 261 provide the President with the authority to deploy
armed forces in a State during emergencies and define the scope of the
law in this regard.
Articles 262 and 263 deal with adjudication of water disputes between
States, establishing a mechanism for resolving conflicts over the
distribution and utilization of water resources.
In summary, the administrative powers enshrined in the Constitution
aim to foster cooperation and coordination between the Union and
States, ensuring the effective execution of laws and the smooth
functioning of the administrative machinery.

Financial Powers (Article 264-290A):

Financial powers under the Indian Constitution are integral to the
functioning of the federal structure, governing the distribution of
resources between the Union and the States. Articles 264 to 290A
provide the framework for financial relations, ensuring a fair and
equitable sharing of financial resources.
Article 264 establishes that no taxes on income shall be levied by the
Union or the States except within the legislative competence of the
respective authorities. This ensures that the power to levy income taxes
is clearly demarcated.
Articles 265 to 268 address principles related to taxation, emphasizing
that no tax shall be levied or collected except by the authority of law.
The Constitution ensures that taxes are imposed only through
legislative enactment.
Article 269 outlines the distribution of taxes between the Union and the
States. Certain taxes, such as taxes on income, are assigned to the
Union, while others, like sales tax, are assigned to the States. The
Constitution provides for the distribution of proceeds of certain taxes
between the Union and the States through a sharing mechanism.
Article 270 deals with the distribution of taxes between the Union and
the States, specifying the categories of taxes that are to be assigned to
each level of government. The distribution is based on the
recommendations of the Finance Commission, which is constituted
periodically.
Articles 271 to 274 provide for surcharges and taxes on certain goods
and services for the purposes of the Union or States, allowing flexibility
in revenue generation.
Articles 275 and 280 establish the Finance Commission, which
recommends the distribution of financial resources between the Union
and States, ensuring fiscal equity.
Article 282 empowers the Union and States to make grants for any
public purpose, even if it is outside their legislative competence. This
allows for flexibility in financial arrangements for important public
initiatives.
Article 283 mandates the preparation of annual financial statements for
both the Union and the States, ensuring transparency and
accountability in financial matters.
Article 285 prohibits the Union and States from taxing each other's
property, ensuring immunity in property transactions.
Article 286 restricts the power of the States to levy taxes on goods that
move across state borders, preventing impediments to the free flow
Emergency Provisions in the Indian Constitution: National Emergency,
State Emergency, and Financial Emergency
The emergency provisions in the Indian Constitution, detailed in Part
XVIII (Articles 352 to 360), empower the government to deal with
situations of crisis or threat to the security, integrity, or financial
stability of the country. These provisions are exceptional and are meant
to be invoked in rare and compelling circumstances. The three types of
emergencies are National Emergency, State Emergency, and Financial
Emergency.
1. National Emergency (Article 352):
 Grounds for Proclamation: The President can proclaim a
National Emergency if the security of India or a part thereof
is threatened by war, external aggression, or armed
rebellion.
 Effect: During a National Emergency:
 The President can suspend the right to move the
Supreme Court for the enforcement of fundamental
rights (except those related to life and personal
liberty).
 The President can issue directions to any State for the
purpose of dealing with the emergency.
 The Parliament can make laws on subjects that fall
under the State List.
 The Union Executive can take over the powers of the
State Executive.
  Duration: A proclamation of National Emergency must be
approved by both houses of Parliament within one month. It
can be in force for an initial period of six months and can be
extended indefinitely with parliamentary approval.
 Judicial Review: The President's satisfaction in proclaiming a
National Emergency is subject to judicial review. If the
proclamation is found to be mala fide or based on irrelevant
grounds, it can be struck down by the courts.
2. State Emergency (Article 356):
 Grounds for Proclamation: The President can impose State
Emergency (commonly known as President's Rule) if he is
satisfied that the government in a state cannot be carried on
in accordance with the provisions of the Constitution.
 Effect: During a State Emergency:
 The President can assume to himself all or any of the
functions of the government of the State.
 The Governor can be appointed as the President's
representative in the State.
 Duration: A proclamation of State Emergency must be
approved by both houses of Parliament within two months.
It can be in force for an initial period of six months and can
be extended for up to three years with parliamentary
approval.
 Judicial Review: The imposition of President's Rule is subject
to judicial review. Courts can examine whether the President
had sufficient material to form his satisfaction and whether
the material was relevant.
 3. Financial Emergency (Article 360):
 Grounds for Proclamation: The President can proclaim a
Financial Emergency if he is satisfied that the financial
stability or credit of India or any part thereof is threatened.
 Effect: During a Financial Emergency:
 The President can direct the reduction of salaries and
allowances of all or any class of persons serving in the
Union or a State.
 The President can issue directions to any State for the
reduction of salaries and allowances of its officers.
 Duration: A proclamation of Financial Emergency must be
approved by both houses of Parliament within two months.
It remains in force as long as the President does not revoke
it.
 Judicial Review: The proclamation of Financial Emergency is
also subject to judicial review. Courts can examine whether
the circumstances necessitating a Financial Emergency truly
exist.
The emergency provisions in the Indian Constitution are carefully
crafted to strike a balance between the need for extraordinary powers
in times of crisis and the protection of fundamental rights and
democratic principles. They are intended to be used sparingly and with
great caution to ensure the preservation of the democratic fabric of the
country.