Union and State

Union and State: An Overview

• The Indian Constitution establishes a quasi-federal structure, balancing a strong central authority with state autonomy.
• Federalism: India is described as a Union of States (Article 1), meaning states do not have the right to secede from the Union.

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Union and State Framework

The relationship between the Union and States is defined in terms of:

1. Legislative Relations (Articles 245–255).
2. Administrative Relations (Articles 256–263).
3. Financial Relations (Articles 268–293).

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Union and State: Legislative Relations

1. Division of Powers (Article 245):

   • Parliament has the power to make laws for the whole or any part of India.
   • State legislatures can legislate for their respective states.

2. Three Legislative Lists (Schedule VII):

   • Union List (97 subjects): Matters of national importance, e.g., defense, foreign affairs, banking.
   • State List (66 subjects): State-specific matters, e.g., police, public health.
   • Concurrent List (47 subjects): Shared powers, e.g., education, marriage, criminal law.

3. Residuary Powers (Article 248):

   • Parliament has exclusive power to legislate on matters not enumerated in any of the three lists.

4. Parliament’s Power Over State Subjects:

   • In the following cases, Parliament can legislate on state matters:
     1. During a national emergency (Article 352).
     2. If two or more states consent (Article 252).
     3. For implementing international agreements (Article 253).
     4. When President's Rule is imposed (Article 356).

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Union and State: Administrative Relations

1. Obligations of States (Articles 256–257):

   • States are required to comply with the laws made by Parliament.
   • The Centre can give directions to states on the proper implementation of Union laws.

2. Control by the Union:

   • The Union can deploy armed forces in any state to ensure compliance with constitutional provisions (Article 257).

3. All-India Services:

   • Services like IAS, IPS, and IFS are controlled jointly by the Centre and states.
   • They promote national integration and administrative uniformity.

4. Inter-State Relations (Articles 261–263):

   • Full faith and credit to public acts, records, and judicial proceedings of other states (Article 261).
   • Inter-State Councils: Established under Article 263 to facilitate coordination between states.

5. Control of the Union Over States:

   • The Union can give directions to states to ensure compliance with laws and national policies.
   • If a state fails to comply, the President can take direct action, including invoking President's Rule (Article 356).

6. Role of Governors:

   • Governors act as a link between the Union and States.
   • Dual role:
     1. Constitutional head of the state.
     2. Representative of the Union.

7. Deployment of Armed Forces:

   • The Centre can deploy armed forces or paramilitary forces in any state to maintain law and order (Article 355).

8. Inter-State Water Disputes (Article 262):

   • Parliament may provide for the adjudication of disputes related to waters of inter-state rivers.
   • Tribunals such as the Cauvery Water Disputes Tribunal resolve such issues.

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Union and State: Financial Relations

1. Union Taxes Shared with States:

   • Taxes collected by the Union but shared with states:
     • Income Tax (excluding corporate tax).
     • Goods and Services Tax (GST): Implemented under the 101st Amendment Act, 2016, with revenue shared between the Centre and States.

2. Grants-in-Aid (Article 275):

   • Specific financial assistance provided to states by the Union for:
     • Promoting the welfare of Scheduled Tribes and other weaker sections.
     • Supporting state plans in underdeveloped areas.

3. Loans and Advances:

   • The Union can provide loans to states for development projects or to bridge revenue gaps.

4. Finance Commission (Article 280):

   • Constituted every five years to recommend:
     • Distribution of taxes between the Union and States.
     • Grants-in-aid to states.
     • Measures to augment state resources.

5. GST Council:

   • A constitutional body established under Article 279A to decide on issues related to GST rates and revenue sharing.
   • Comprises the Union Finance Minister, state finance ministers, and other representatives.

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Union vs. State Powers

Aspect	Union	State
Legislative Powers	Union List (e.g., Defense)	State List (e.g., Police)
Executive Powers	Central control over inter-state disputes	State-specific administration
Financial Powers	Major revenue sources (e.g., Income Tax)	Limited revenue sources (e.g., Land Tax)

Key Features of Union-State Relations

1. Cooperative Federalism:

   • Both the Union and states work together on shared objectives like poverty alleviation and disaster management.

2. Competitive Federalism:

   • States compete to attract investments and improve governance standards.

3. Mechanisms for Dispute Resolution:

   • Supreme Court: Adjudicates disputes between states or between the Centre and states.
   • Inter-State Councils: Facilitates coordination and communication.

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Cooperative Federalism

• Cooperative federalism promotes collaboration between the Centre and states to achieve common goals.
• Examples:
  • Centrally Sponsored Schemes like Swachh Bharat Mission, Ayushman Bharat.
  • Joint efforts during disasters or pandemics.

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Special Provisions for Certain States

1. Article 370 (Repealed in 2019):

   • Granted special autonomy to Jammu and Kashmir.
   • Repealed by the Jammu and Kashmir Reorganization Act, 2019, making it a Union Territory.

2. Article 371 and Sub-Articles:

   • Special provisions for states like Maharashtra, Gujarat, Nagaland, Mizoram, and others.
   • Aim to address the unique socio-economic and cultural needs of these states.

3. Union Territories:

   • Administered directly by the Union government through an appointed Administrator or Lieutenant Governor.
   • Some UTs, like Delhi and Puducherry, have legislative assemblies with limited powers.

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Union and State Mechanisms for Coordination

Mechanism	Description
Inter-State Council	Advisory body under Article 263 to discuss policies and inter-state disputes.
Zonal Councils	Established under the States Reorganization Act, 1956, to promote cooperation.
Finance Commission	Resolves financial disputes and ensures equitable distribution of resources.
GST Council	Decides on GST-related issues and revenue sharing between the Centre and States.

Emergency Provisions Impacting Union-State Relations

1. National Emergency (Article 352):

   • The Union assumes extensive powers.
   • The state legislatures continue to function but may be overridden by Parliament.

2. President's Rule (Article 356):

   • Imposed if the governance of a state is not in accordance with the Constitution.
   • The President assumes the functions of the state government.

3. Financial Emergency (Article 360):

   • The Union can control state finances.
   • All money bills passed by state legislatures require Presidential approval.

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Key Features of Financial Relations

Aspect	Union	State
Major Sources of Revenue	Income Tax, Customs, GST (central portion)	Land Revenue, Stamp Duty, GST (state portion)
Role in Financial Planning	Overall economic policy and budget	Implementation of schemes
Role of Finance Commission	Recommendations on tax sharing	Addressing state financial needs

Disputes Between the Union and States

1. Legislative Disputes:

   • Resolved through:
     1. Supremacy of Union Laws: If a state law conflicts with a central law on a subject in the Concurrent List, the central law prevails (Article 254).
     2. President's Assent: A state law inconsistent with Union law can come into force if it receives the President’s assent.

2. Administrative Disputes:

   • Addressed by:
     • Inter-State Council (Article 263): Advises on disputes and promotes cooperation.
     • Tribunals: Established to resolve specific issues like inter-state river water disputes (e.g., Krishna Water Disputes Tribunal).

3. Financial Disputes:

   • Finance Commission (Article 280) recommends the distribution of resources.
   • Disputes related to GST are resolved by the GST Council.

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Zonal Councils

• Established under the States Reorganisation Act, 1956 to foster cooperation between states and the Centre.
• Five Zonal Councils:
  • Northern Council: Includes Haryana, Himachal Pradesh, Jammu & Kashmir, Punjab, and others.
  • Central Council: Includes Uttar Pradesh, Uttarakhand, Madhya Pradesh, and others.
  • Eastern Council: Includes Bihar, Jharkhand, Odisha, and West Bengal.
  • Western Council: Includes Rajasthan, Gujarat, Maharashtra, and Goa.
  • Southern Council: Includes Andhra Pradesh, Karnataka, Kerala, Tamil Nadu, and others.
• Objectives:
  • Resolve inter-state disputes.
  • Promote economic and social development.

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Key Mechanisms for Cooperative Federalism

1. Inter-State Council (Article 263):

   • An advisory body established to:
     • Discuss and recommend on disputes.
     • Strengthen cooperative federalism.
   • Chaired by the Prime Minister with Chief Ministers and Union Ministers as members.

2. NITI Aayog:

   • Replaced the Planning Commission in 2015.
   • Promotes cooperative federalism by involving states in decision-making.

3. Finance Commission (Article 280):

   • Ensures equitable distribution of financial resources.

4. GST Council (Article 279A):

   • Facilitates cooperative federalism by ensuring smooth implementation of GST.

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Union-State Relations During Emergencies

1. National Emergency (Article 352):

   • Union assumes greater control.
   • State executives function under Union directives.

2. President’s Rule (Article 356):

   • The state legislature is either dissolved or suspended.
   • The Union Parliament assumes legislative functions.

3. Financial Emergency (Article 360):

   • Union exercises control over state finances.
   • Salaries of state officials may be reduced.

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Union Territories and Special Provisions

1. Union Territories:

   • Administered directly by the Union.
   • Some, like Delhi and Puducherry, have legislatures with limited powers.

2. Special Provisions for Certain States:

   • Articles 371 to 371J provide special provisions for states like Nagaland, Mizoram, and Maharashtra.

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Emergency Provisions and Their Impact on Union-State Relations

Emergency	Provision	Impact on States
National Emergency	Article 352	Union overrides state laws and functions.
President’s Rule	Article 356	State legislature suspended; Union assumes governance.
Financial Emergency	Article 360	Union controls state finances and expenditures.

Judicial Role in Union-State Relations

1. Supreme Court Jurisdiction:

   • Resolves disputes between:
     • Centre and States.
     • Two or more states.

2. Doctrine of Basic Structure:

   • Established in the Kesavananda Bharati Case (1973).
   • Ensures that the fundamental features of the Constitution cannot be altered, even during emergencies.

3. Important Cases:

   • S.R. Bommai Case (1994):
     • Laid down guidelines for imposing President's Rule.
   • Cauvery Water Disputes Tribunal:
     • Adjudicated disputes over inter-state river water sharing.

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Key Articles in Union-State Relations

Article	Provision
Article 245	Distribution of legislative powers
Article 248	Residuary powers vested with the Union
Article 263	Inter-State Council for dispute resolution
Article 280	Finance Commission for financial resource distribution
Article 352	National Emergency
Article 356	President’s Rule
Article 360	Financial Emergency

Significance of Union-State Relations

• Balances autonomy and centralization for efficient governance.
• Promotes cooperative federalism and national unity.
• Adapts to changing circumstances through constitutional mechanisms and judicial oversight.

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