Centre State Relations in India1

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UNION STATE RELATIONS IN INDIA

FEDERALISM
What is federalism? Why needed? Dual policy of administration Distribution of power ( LEGISLATURE ,ADMINISTRATION and FINANCIAL) by constitution. India is a very big country with very large population.

DYNAMICS OF CENTRE STATE RELATIONS


Because of political domination of the Congress both at the level of the Centre and the States power was concentrated at centre. situation changed in 1967 when non Congress parties formed Government in some of the states because of regional strongholds. This was the starting of conflict between the Union and the States. states were in no position to influence the centre till 1980s. The period during and after 1990s one party rule being replaced by alliances.

FACTS
1st LOK SABHA

INC 364

TOTAL 489

75%

54 parties

15 th LOK SABHA

INC 2O6

TOTAL 545

38%

more than 1000

at present out of 28 states , only 12 are dominating by congress

SARKARIA COMMISSION:
Chairmanship of Justice R. S. Sarkaria to examine the working of centre state relations Inter state Council

Local Self Governments should be strengthened

PUNCHI COMMISSION:
A constitutional or legal framework should be provided for exercising powers for dismissal of state governments.

higher transfer of funds to the backward states.


States should also be involved in FINANCE COMMISSION

INTER STATE COUNCIL


The Council was formed on 28 May 1990.

Platform to discuss and investigate matters among some or all states or states and the Union.
The Council is chaired by the Prime Minister and includes Chief Ministers or Heads of Government of State and Union Territories and six Cabinet Ministers nominated by the Chairman as members.

DISTRIBUTION OF POWER
Legislative Administrative Financial

LEGILATIVE RELATIONS
Constitution of India divide legislative power between union and states in three

list

union list State list concurrent list

(defence, foreign affaires, banking, currency, citizenship etc.) (health and sanitation, irrigation ,public order and police etc.)

( Criminal law, Marriage and divorce, infants and minors, adoption; wills, intestacy and succession, joint family and partition)

Residuary power vested in Parliament.

Exceptional circumstances (state and concurrent list)


During Proclamation of emergency (during rule of INDIRA GANDHI)

Power of parliament to legislate in case of national interest


Failure of constitutional machinery in any state

ADMINISTRATIVE RELATIONS
Appointment of governor President rule Protection of railway and maintenance of communication of national or military importance if directed by centre . Extra expenditure is reimbursed by centre Parliamentary control over inter state river disputes. Inter state council set up by president to dissolve the matter among the states

FINANCIAL RELATIONS
Union is financially more strong
States have their own resources but centre provides substantial amounts to the states by way of grant in aid, share proceed of certain taxes etc. Appointment of finance commission to examine the distribution of taxes.

DISTRIBUTION OF TAXES
Taxes levied by union but collected by state (stamp duties) Taxes levied and collected by union but assigned to state(tax on sales and purchase, on consignment) Taxes levied by union but collected by both determined by parliament ( taxes on services).

SPECIAL STATUS OF JAMMU AND KASHMIR Financial emergency cant be imposed Parliament is not empowered to make laws on state list Amendment to constitution apply after presidential order. No automatic extension to state in case of national emergency.

THANK YOU

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