Federal structure in India

History

The last emperor of Moghul dynasty did not mind to delegate the civil administration authority to the East India Company, which was the first historic blunder that paved the way for the Company rule.
Genesis of idea of federalism in India was first traced in Simon Commission, “Indian Statutory Commission” appointed in 1927. The Commission was meant for revision of the Constitution for India. In its report in 1930, the Commission recommended the evolution of India into “a federation of self-governing units”.
The representatives of Princely States declared during the First Round Table Conference 1930-32) that they would join an “All India federation with a self-governing British India”
By Government of India Act 1935, the background was ready for making India to become a federation with 11 Governor’s Provinces and 650 Native States, who supposed to have fifty per cent seats in Council of States. However, execution of the instrument of accession was the pr erequisite to form the Federation, which could not become a reality

The Cabinet Mission Plan in 1946 contemplated the division of the country into three Zones . The Center was supposed to be uniting point of these three zones, with its power confined only to Defence, Foreign Affairs and Communication. Constituent Assembly was to be divided into three sections according to the Zonal Scheme for evolving provincial and group Constitutions. Indian National Congress was advocating for a strong center from the beginning. In fact, the Cabinet Mission Plan which resulted in weak center proved to be a disaster as the country was bifurcated.
While presenting the Partition scheme, Lord Mount batten insisted the major parties to agree for partition to have the federation with a strong center, instead of weak center as contemplated in Cabinet Mission Plan.

Unification of scattered Indian states within the sub-continent and a violent partition . The framers of the Constitution intended to secure the hard-won freedom with integrity and preferred a strong union within a federation,
Ambedkar said that the Indian federation was a “Union” because it was indissoluble, and no state had a right to secede from the Indian Union . Bcoz , Th e t erm ‘f ederation ’ i s derived from a Latin word foedus which means ‘treaty ’ or ‘agreement ’.
In Keshavananda Bharathi case, the Supreme Court said that the federal character of the Constitution was its basic feature
Most of the federations in the world came into existence because of two or three independent states coming together. In India the process is reverse. Originally it was a vast unitary state with several provinces as administrative units. Indian federation was not the result of an agreement between the federating states. A federat ion can be formed in two ways, that is, by way of integration ( USA ) or by way of disintegration ( Canada ) .

Till1967,thecentre–staterelationsbyandlargeweresmoothduetoone-partyruleattheCentreandinmostofthestates.In1967elections,theCongresspartywasdefeatedinninestatesanditspositionattheCentrebecameweak.ThischangedpoliticalscenarioheraldedaneweraintheCentre–staterelations.
The non Congress Governments in the states opposed the increasing centralisation and intervention of the Central government.They raised the issue of state autonomy and demanded more powers and financial resources to the states. This caused tensions and conflicts in Centre– state relations.

Why Federalism ? Federal constitution provides for expression of regional goals and national objectives. it will be helpful in justifying the formation of new states

There are two levels of government above local level, with sovereignty in certain specific areas. The Central government will be having sole authority to coin money, raise an army and declare war, while intermediate level of government, i.e., states or provinces have sole authority to regulate education, criminal law, or civil law, citizens deal with both levels of government.
Federal Government can absorb some of the costs of new technology or programs that would have to be absorbed completely by member units in a unitary system
Federation is suitable to a plural society with multiple cultures and multiple language speaking populations . It can accommodate the aspirations and sovereign interests of different provinces with ethnic groups, linguistic characteristics.
The core idea of having three lists can be summarised in the following way. There are some subjects that need uniform treatment across the country (currency, defence), which should be on the Union list. Some subjects have a local character and each state may be best positioned to decide on the way to handle them — these can be included on the state list. There is a third category of items, on which some level of national uniformity is desirable but with the flexibility to tailor to local needs — these can be included in the concurrent list. Therefore, one way to deal with concurrent list items is for Parliament to make a skeletal law, leaving room for states to fill in the details according to local requirements.
Federalism allows countries involved to maximize the growth and political strength, while at the same time allowing the expressions of regional characteristics
the large size of the countryand its socio cultural diversity.
ensures the efficient governance of the country
re-conciles nationa lunity with regional autonomy.
International

While China is Unitary, other four big nations like, Canada, the United States, Brazil and Australia are the federations. The USSR was also a federation, till it had split into some smaller federations. Mexico, Venezuela and Argentina in Latin America; Nigeria in Africa; Switzerland Yugoslavia and Czechoslovakia (till it was split into nations) in Europe and India in Asia are the other federations.

Switzerland Switzerland chose federal system as that suits its three language groups, German, French and Italian. It recognizes three official languages

Germany Germany also adopted the federal s ystem. Instead of dividing the powers between the Bund (Central Government) and Lander (Member Units), the German Constitution provides for broad area of concurrent jurisdiction.The Upper House of the National Legislature, the Bundesrat, is chosen by the Lander Governments and has an absolute veto over matters of ‘national’ concern

Ambedkar used the term Union to make it clear that states had no right to secede from the Union to set themselves into separate States. He said that this Union was Federation and called it a flexible federation to say that it was not as rigid as the American Constitut ion was.

USA Indestructible union of indestructible states ( i.e Union cant change the area of states ) — while India is a indestructible Union of destructible states ( India mei itna diversity hai… its necessary to give flexibility to meet the regiional aspirations )
In US, the principle of equality of representation of states in the Upper House is fully recognised . Thus , the American Senate has 100 members , two from each state . This principle is regarded as a safeguard for smaller states. In India – Sikkim vs UP
dual citizenship
federal laws are enforced by federal judiciary and the state laws by state judiciary – India has integrated judiciary
separate public services – while India has all India services . Centre trains and control them
The Americans had to wage a civil war to establish that the States have no right of secession and that their federation was indestructible. The Drafting Committee thought that it was better to make it clear at the outset rather than to leave it to speculation or to dispute .Ambedkar used the term Union to make it clear that states had no right to secede from the Union to set themselves into separate States. He said that this Union was Federation and called it a flexible federation to say that it was not as rigid as the American Constitut ion was.
In the United States Constitution, “the powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively or to the people.”
The powers are thus mutually exclusive and it was left to judicial interpretation to imply a limited field of concurrent legislative action.

Australia In Australia, the residuary powers are reserved with States, but the enumerated powers of the Commonwealth are not exclusive so that there is a large field of concurrent legislative action. In Australia , The enumerated powers of the Commonwealth are not exclusive so that there is a large field of concurrent legislative action.

Canada Canadian Constitution gave residuary powers to the Dominion . It contained double enumeration of exclusive legislative powers.
Seervai says, the framers preferred to borrow Section 92 of the Australian Constitution and couched Article 301 in similar language giving freedom of trade and commerce.

One- enumerated powers are given to the Union and residuary power to States as in the US and Australia. Two-enumerated powers are given to the States and residuary powers being given to the Union as in Canada.

India The Indian federal system is based on the ‘Canadian model’ and not on the ‘American model’ .The ‘Canadian model’ differs fundamentally from the ‘ American model’in so far as it establishes a very strong centre . The Indian federation resembles the Candian federation (i) in its formation(i.e.,by way of disintegration);(ii)in its preference to the term ‘Union’( the Canadian federation is also called a ‘Union’) ; and (iii) in its centralising tendency (i.e., vesting more powers in the centre vis-a-vis the states).

Types

CONFEDERATION the units dominate the Union. In a Confederation, there will be an alliance between independent states where units can secede.
Unitary state the Union dominates the Units . In Unitary State the legislatures of Units derive power from Central Legislature.
Federation Union and Units are co-equal . Division of legislative powers, each unit being sovereign in its own sphere.

What is Federalism Basic feature Autonomy vs national integrity

The basic principle of federalismis that the legislative and executive authority is partitioned between the Centre and the states not by any law to be made by the Centre but by the Constitution itself
“It represents a compromise between the following two conflicting considerations
(i) normal division of powers under which states enjoy autonomy within their own spheres;and
(ii)need for nationa lintegrity and a strong Union government under exceptional circumstances.”

Indian Federalism Flexible Federalism Ambedkar – both unitary as well as federal according to the requirements of time and circumstances.
However it is called “cooperative federalism” as the states are expected to cooperate with each other.
quasi – federa

Federal Features Unitary Features
Dual Polity Strong centre + states can be altered
Written Constitution ( its acknowledged by the constitution that whatever is said in it will and has to be implemented )
Rigid constitution – those provisions which are concerned with the federal structure(i.e.,Centre–state relations and judicial organi-sation) can be amended only by the joint action of the Central and state governments .Such provisions require for their amendment a special majority ofthe Parliament and also an approva lof half of the state legislatures. Flexible constitution – Constitution can be amended by the unilateral action of the Parliament , either by simple majority or by special majority . Further , the power to initiate an amendment to the Constitution lies only with the Centre. In US, the states can also propose an amendment to the Constitution .
Supremacy of Constitution ( i.e. everything as per constitution and not arbitrary action ) Single constitution – States cant make their own constitution .. Except J & K
Division of Powers – Lists the Union List contains more subjects than the State List. Secondly, themore important subjects have been includedintheUnionList.Thirdly,theCentrehas overriding authority over the Concurrent List.Finally , the residuary powers have also been left with the Centre ,while in the US, they are vested in the states . Thus, the Constitution has made the Centre very strong –
Independent judiciary
Bicameralism – ( smaller than germany powers as in germany rajya sabha , it ) ( lok sabha represents the people while rajya sabha represents the states ) No equality in state representation (unlike USA , 2 from each state – Here sikkim gets 1 , while UP gets 80 )
State s Not Inde struc ti bl e – by simple majority . The American Federation , on the other hand, is described as “an in destructible Union of in destructible states”
Emergency Provisions
Single Citizenship
Integrated Judiciary ( unlike USA – federal laws are enforced by federal judiciary and the state laws by state judiciary )
All-India Services- In US , the Federal government and the state governments have their separate public services .In India also, the Centre and the states have their separate public services .But, in addition, there are all-India services (IAS, IPS, and IFS) which are common to both the Centre and the states . The members of these services are recruited and trained by the Centre which also possess ultimate control over them. Thus, the seservices violate the principle of federalism under the Constitution.
Parliament control over state list and concurrent list
Appointment of Governor
Integrated Audit , Election , Intelligence , etc Machinery
Veto over state bills

LEGISLATIVE RELATIONS

245 • Territorial and extraterritorial extent of Central and territorial extent of state legislation ; Art 245
The Parliament can make laws for territory and extra – territorial legislation . i.e the whole or any part of the territory of India and the laws of the Parliament are also applicable to the Indian citizens and their property in any part of the world.
A state legislature can make laws for the whole or any part of the state.

Note: Territorial power of Parliament overlaps with territorial power with state so solution kya hai.……. Solution hai next article … Art 246. which enumerates seventh schedules .. i.e union + state + concurrent lists clearly ..
Territorial powers of Parliament also is in conflict of union territories, so The President can make regulations for the peace, progress and good government of the four Union Territories—the Andaman and Nicobar Islands, Lakshadweep, Dadra and Nagar Haveli and Daman and Diu .A regulation so made has the same force and effect as an act of Parliament
Territorial powers of Parliament also is in conflict of Scheduled areas… so , The governor is empowered to direct that an act of Parliament does not apply to a scheduled area in the state or apply with specified modifications and exceptions
Territorial powers of Parliament also is in conflict of tribal areas , so The Governor of Assam may likewise direct that an act of Parliament does not apply to a tribal area (autonomous district) in the state or apply with specified modifications and exceptions. The President enjoys the same power with respect to tribal areas ( autonomous districts) in Meghalaya, Tripura and Mizoram.
Parliament do have a power to make laws for citizens who are in Indian territory but it is again limited by fundamental rights
Parliament can pass bills regulating anything , subject to the the basic structure of the constitution and conformity of the constitution itself .
Parliament and state can delegate the power of law making according to the change in local conditions, provided standards for guidance are provided in the act; i.e. pachayat act must be passed by parliament to empower local bodies to make laws at the village level.. constitution did say u should make an act to do so.. else u cant delelgate ur work to below levels ..

• Parl iam en t ary leg i slat ion in t h e st at e f ield; an d
• Cen t re’s con t rol over st at e leg i slat ion

246 • Distribution of legislative subjects; – A/q SEVENTH Schedule Doctorine of pith and substance

List 1 – Union List Parliament has exclusive powers
The matters of national importance and the matters which requires uniformity of legislation nation wide are included in the Union List

List 2 – State list State legislature has exclusive powers “in normal circumstances”
The matters of regional and local importance and the matters which permits diversity of interest are specified in the State List.
Thus , the extra-ordinary circumstances where the Constitution Parliament should make laws with respect to any matter enumerated in the State List are :
When Rajya Sabha Passes a Resolution : Su ch a resolution supported by not less than twothirds of the members present and voting. The resolution shall remain in force for one year; it can be renewed any number of times but not exceeding one year at a time.
During a National Emergency
When States ( not a state , but states ) Make a Request
To Implement International Agreements Teesta treaty- Mamta banerjee
During President’s Rule

Even “in normal circumstances” , Centre to exercise control over the state’s legislative matters
The president enjoys absolute veto over the bills reserved by the governor for president’s assent , which have been passed by the state legislature
During a financial emergency , the President can direct the states to reserve money bills and other financial bills passed by the state legislature for his consideration
Bills on certain matters enumerated in the State List can be introduced in the state legislature only with the previous sanction of the president. (For example, the bills imposing restrictions on the freedom of trade and commerce).

List 3 – Concurrent List Both , the Parliament and state legislature can make laws
Thus,it permits diversity along with uniformity. The matters on which uniformity of legislation throughout the country is desirable but not essential are enumerated in the concurrent list.

International Residuary powers only Parliament
In US , federal govt has a specified list of powers . Rest all powers ( which u can say residuary ) are left to the states. Same as Australia..
In Canada and in India , on the other hand, there is a double enumeration —Federal and Provincial , and the residuary powers are vested in the Centre.
Th e Govern m en t of I n dia (GoI ) Act of 1935 provided f or a t h ree-f old em u m en rat ion , viz ., f ederal , provin cial an d con cu rren t , and concurrent powers in hands of Governor general of India

In case of a conflict between the Central law and the state law on a subject enumerated in the Concurrent List, the Central law prevails over the state law.

However, there is an exception — if a state legislature passes a law that contradicts a Central legislation, and that law is reserved for the president’s consideration and receives his assent, then the state law shall prevail on the issue.

The core idea of having three lists can be summarised in the following way. There are some subjects that need uniform treatment across the country (currency, defence), which should be on the Union list. Some subjects have a local character and each state may be best positioned to decide on the way to handle them — these can be included on the state list. There is a third category of items, on which some level of national uniformity is desirable but with the flexibility to tailor to local needs — these can be included in the concurrent list. Therefore, one way to deal with concurrent list items is for Parliament to make a skeletal law, leaving room for states to fill in the details according to local requirements.

Doctorine of Pith and substance Where the question arises of determining whether a panicular law relates to a particular subject mentioned in one list or another, the court looks to the substance of the matter. Thus, if the substance falls within Union List, then the incidental encroachment by the law on the Stale List does not make it invalid

News

Land acquisition, for example, falls within the concurrent list. The question is whether a uniform law — the Central land acquisition act — is workable for a country with a high level of diversity in population density, land use, economic development, geographical features etc . Would it have been better for Parliament to outline the main principles and let states work out the details of the process of acquisition, compensation etc?
The new government in Rajasthan has piloted amendments to four labour laws (a concurrent list subject), which have been passed by the Rajasthan assembly and sent to the president for his consideration. These include amendments to the Factories Act to define a factory as a unit with 20 workers if using energy and 40 workers otherwise (increased from 10 and 20 workers, respectively), to the Industrial Disputes Act to require employers having 300 workers or more to take the state government’s permission for retrenchments (earlier this was 100 workers or more), to the Contract Labour Act to cover establishments with over 50 employees (earlier 20), and to the Apprentices Act to reduce the training period, allow third-party training and set the minimum pay for apprentices at the level of unskilled labour. If the president gives his assent, these amendments will be valid in Rajasthan.
Rajasthan has also passed the Rajasthan State Highways Act, which makes it easier to acquire land for state highways. This act regulates and provides a process for the acquisition of land for them. This process differs from the Central land acquisition act. The Central act has a detailed procedure that can take about 50 months to be completed, if one assumes that all sequential steps take the maximum permitted time. The Rajasthan act skips some steps — including the social impact analysis and the need to procure the consent of landowners — and the acquisition can be completed in 81 days. It also reduces the compensation provided for acquisition in rural areas, which in the Central act is between two and four times the market value, depending on the proximity to an urban area. The Rajasthan act mandates compensation of twice the market value if the distance is less than 20 kilometres and two-and-a-half times for greater distances. This law takes advantage of a provision in the Central act, which contains a list of 13 laws that are exempt from it and allows the Central government to modify the list through a notification. The Rajasthan act proposes that it be added to this list.
These examples show instances of a state taking the lead on certain legislative issues. It remains to be seen whether other states will follow in a similar manner on issues on the concurrent list.

Administrative relations ( executive relations- i.e. law + administration ) power of execution Dil se samajh mei nhi aaya .. Art 365

Executive powers
In subjects of Union list , the ex ecutive power of the Centre extends to the whole of India ..( i.e. centre duty to maintain/execute union list subjects.. Like defence , communications , etc…)
In subjects of state list , t h e ex ecu t ive power of a st at e ex t en ds t o i t s t erri t ory in respect of m at t ers on wh ich t h e st at e leg i slat u re h as ex clu sive power of leg i slat ion.. ( exclusive mane ki.. parliament ye na keh diya.. ki us state list mei hum interfere kar rhe.. )
In subjects of concurrent list , the executive power rests with the states except when a Constitution al provision or a parliamentary law specifically confers it on the Centre. — note , in legislative power , centre had the power for concurrent list.. but state has the executive power in concurrent list

Lekin , executive power state ka badh gya.. To usko regulate karne ke liye kuch law banana hoga… so flows next article… ( dekho.. Legislative powers mei bhi to check teritotity jurisdiction btn union and states , list were introduced .. Here .. To check states , rules are imposed… similar types… list bana ke centre ko check , rules bana ke states ke executiv action ko check

Check /obligation of exercise of executive powers

The ex ecutive power of every state is to be exercised in such a way
(a) as to ensure compliance with the laws made by the Parliament and any existing law which apply in the state;

and if states fail to comply with the Pariament laws , then

Article 365 says that where any state has failed to comply with (or to give effect to) any directions given by the Centre, it will be lawfulf or the President to hold that a situation has arisen in which the government of the state cannot be carried on in accordance with the provisions of the Constitution. It means that , insuch a situation, the President’s rule can be imposed in the state under Article356.

isse pretect ke meddenazar Nehruji ke Left govt ko Kerela se dismiss kiya tha..
Issi pretext pe Indira gandhi ne non-conress states pe phir se election karwaya tha
issii pretext pe BJP maang kar rhi hai.. Ki mulayam sarkar ko dismiss kiya jaye…

Mutual Delegation of Functions/powers leads to cooperative federalism coopeartion ka uttam example.. To be used and written in exams

“Th e di st ribu t ion of leg i slat ive powers between t h e Cen t re an d t h e st at es i s rig id. Con sequ en t ly , t h e
Cen t re can n ot deleg at e i t s leg i slat ive powers t o t h e st at es an d a sin g le st at e can n ot requ est t h e
Parl iam en t t o m ak e a law on a st at e su bject . Th e di st ribu t ion of ex ecu t ive power in g en eral f ol lows
t h e di st ribu t ion of leg i slat ive powers. Bu t , su ch a rig id divi sion in t h e ex ecu t ive sph ere m ay lead t o
occasion al con f l ict s between t h e two. Hen ce, t h e Con st i t u t ion pr-ovides f or in t er-g overn m en t
deleg at ion of ex ecu t ive f u n ct ion s in order t o m i t ig at e rig idi t y an d avoid a si t u at ion of deadlock”

President can with the consent of the state government ,entrust to that government any of the executive functionsof the Centre. Parliament can, without state’s consent also impose its executive functions by a legislation. ( carrot and stick policy )
Conversely ,the governorof a state may,with the consent of the Central government, entrust to that government any of the executive functions of the state.

Ex ; adjudication of any dispute of any inter-state river by parliament ( yahan consent na bhi ho ek party ka.. Tab bhi parliament bna sakta hai… to maintain peace.. And settle matter )
Ex: setting up of Inter – state council by president.. ( yahan consent se hoga.. Isliye president aa gye.. )

Tabs Al l -Indi a Se rvi c e s P ubl i c Se rvi c e Commi ssi ons Inte grate d Judi c i al System Re l ati ons Duri ng Eme rge nc i e s Constituional – Non constitutional bodies

Financial Relations by Finance Commission special category states

Taxation as per Lists

Union list- The Parliament has exclusive power to levy taxes on subjects enumerated in the Union List
State List-The state legislature has exclusive power to levy taxes on subjects enumerated in the State List
Concurrent List- Both the Parliament and the state legislature can levy taxes on subjects enumerated in the Concurrent List
Residuary powers – The residuary powe rof taxation (that is, the power to impose taxes not enumerated in any of the three lists) is svested in the Parliament.

Distribution of Tax/Non Tax Revenues

As per recommendations of Finance commission See finance commission

Grants-in-Aid to the States Statutory + Discretionary grants

The Constitution provides for grants-in -aid to the states from the Central resources.
Th ere are two t y pes of g ran t s-in -aid, viz ,

Statutory Grants Parliament to m ake grants to the states which are in need of financial assistance and not to every state.
Discretionary Grants Both the Centre and the states to make any grants for any public purpose, even if it is not within their respective legislative competence.Under this provision, the Centre makes grants to the states on the recommendations of the Planning Commission—an extra- constitutional body.

Finance commission

Distribution of tax Th e di st ribu t ion of t h e n et proceeds of t ax es t o be sh ared between t h e Cen t re an d t h e st at es, an d t h e al locat ion between t h e st at es, t h e respect ive sh ares of su ch proceeds.
Grant – in – aid Th e prin ciples wh ich sh ou ld g overn t h e g ran t s-in -aid t o t h e st at es by t h e Cen t re (i .e., ou t of t h e Con sol idat ed Fu n d of I n dia).

Borrowing by the Centre and the States

Cen t ral g overn m en t can m ak e loan s t o an y st at e or g ive g u aran t ees in respect of loan s rai sed by an y st at e.
Cen t ral g overn m en t can borrow ei t h er wi t h in I n dia or ou t side u pon t h e se-cu ri t y of t h e Con sol idat ed Fu n d of I n dia
St at e g overn m en t can borrow wi t h in I n dia (an d n ot abroad) u pon t h e secu ri t y of t h e Con sol idat ed Fu n d of t h e St at e
A st at e can n ot rai se an y loan wi t h ou t t h e con sen t of t h e Cen t re, i f t h ere i s st i l l ou t -st an din g an y part of a loan m ade t o t h e st at e by t h e Cen t re or in respect of wh ich a g u aran t ee h as been g iven by t h e Cen t re

However , financial allocation of states can be altered during emergency

Issues of Conflict btn centre and state
Mode of appointment and dismissal of governor
Discriminatory and partisan role of governors
Imposition of President’s Rule for partisan interests ;
Deployment of Central forces in the states to maintain law and order;
Reservation of state bills for the consideration of the President
Discrimination in financial allocations to the state
Management of All-India Services ( IAS, IPS, and IFS)
Sharing of finances ( between Centre and states);
Encroachment by the Centre on the State List.

Reports on Centre state relations ARC Sarkaria Punchi Anandpur Sahib Resolution

Conclusion
Federalism which is nowhere mentioned in the constitution but interpreted by our judiciary as the basic feature so we must evolve a spirit of cooperative federalism so that national interest could be served.

Q A

1. Discuss the major extra-constitutional factors influencing the working of federal polity in India. (00/15)
“Ans – Role of planning commission and its discretionary grants – role of NCTC ( pub-ad ) , while maintaining law and order i.e. police is under state list ..( though national security inder state list ) , Direct cash transfer from the centre to the public , thus by-passing the state machinery + Centrally sponsered schemes which have grown due to welfarism do not count states in their formulation process States become implementing agencies only . , polity – rise of regional parties giving demands for local aspirations + though centre authorised to execute international treaties , but the consent of concerned states must also be involved ( teesta treaty + TN parties against UNHRC resolution opposing central govt ) + creation of state on a basis of language – this point I may be wrong bcoz constitution authorises creation of states ) + manipur issue over control of minierals ( geography ) + implementation of GST i.e {Globalisation has had a contradictory role; It has increased revenue to the state in form of taxes and investment but at same time demand for uniform taxation policy in the entire country is made. } ( economic ) + Bodies like NIC, ZOnal COuncils, NDC must be mentioned – read abt them plz.. The allocation of resources and deployment of army and paramilitary troops by centre has been questioned and debated by states..+ civil society groups like Anna hazare movement compelled the union government to bring a bill to setup a Lokapal at center & Lokayukta at states level. But State government feel that setting up of Lokayukta under central legislation is against the federal structure and bill could not be passed in the council of states… Even the UGC in considered extra constitutional. Because education is in concurrent list and it provides a scope for cooperation between centre and state in matters related to higher education.

Conclusion : principle of subsidiarity + basic feature doctorine + cooperative federalism + Punchi and Sarkaria commisison report will help ”
2. Discuss the financial relations between thecentre and the states in the light of recent controversies. (01/30)
Ans – the share of distribution of finances btn centre and state is fixed by the finance commission + role of planning commission to allocate resources + grant-in-aids via statutory and discretionary grants + central funds in case of disaster /natural calamity – contigency fund of India + The centre lends extra aid to backward and hilly states ( from Bihar demand for a special category state , I can get a clue ) + The FRBM act (2003) has given some financial autonomy to states. They can now borrow money from the market to finance developmental projects in the state + use of loan waivers , regressive taxation ( to promote a particular region for banlanced development )
3. What are the constitutional restrictions imposedupon the power of borrowing of the state governments? (04/2)
Ans – states cant borrow outside India but with other states and centre + cant raise loan without state’s consent
4. Comment on the financial relations between the Union and the States in India, Has post-1991 liberalization in any way affected it? (05/30)
“Intro: The Centre State financial relations are well delineated in Indian Constitution. Subjects on which each holds authority of taxation follow framework given in Schedule 7 . ( why asked / present situation ) – Howver States are dissatisfied with the dependence of states on Union government for grants as actual administration takes at state level while states are not provided commensurate financial autonomy. CMs have complained states are treated as municipalities by centre. Another grievance that has been raised is the increasing status of Planning Commission in fund allocation. The increasing stature of a non statutory and non constitutional body that functions on a Top Down approach i.e. centralized planning is opposed to.

First part .. See ans 2… implementation of GST i.e {Globalisation has had a contradictory role; It has increased revenue to the state in form of taxes and investment but at same time demand for uniform taxation policy in the entire country is made. } ( economic ) Welcome changes: Schemes like RKVY, JNNURM etc. give considerable scope for state autonomy in deciding where to channelise the funds e.g. flexi-funds. State specific solutions for state specific problems.”
5. Discuss the major extra-constitutional factors influencing the federal polity in India. (08/30)

6. Examine the demand for greater state autonomy and its impact on the smooth functioning of Indian polity. (2008/15 )
“Ans .. view why union form vs federal form …
Demand for seperate telangana vs khaistan vs J& K
Legis.. State vs Union vs concurrent — .. Normal vs extraordinary
Executive … public service + judiciary + constitutional bodies +
Financial … borrowings + collection + distribution + finance commission + grant – in – aids
Political – party – one vs regional .. + role of governors + emergency rule
Pub ad – Governance + scheme implementation + grievance redressal + police + constituional bodies
History – art + culture ( aspirations to language , preservation of culture as in jharkhand , territory as in uttarakhand ) ties to govt nearby

Solution :
Govt initiatives : role of finance commission + sarkaria + punchi

Conclusion : Hence Centre must hold the critical portfolios like defense, communication and foreign policy and devolve more powers to states without compromising the unity of India , based on the principle of subsidiarity .”
7. Discuss the administrative relations between the centre and the states in the light of recent controversies. (2001/30)

Union vs state vs Concurrent list
The Seventh Schedule of the Constitution contains three lists which enumerate the items that fall under the purview of the Union, the states and both (the concurrent list). Both Parliament and state legislatures can make laws on items that fall within the concurrent list. If there is a contradiction in the laws passed, the Central law shall prevail.
However, there is an exception — if a state legislature passes a law that contradicts a Central legislation, and that law is reserved for the president’s consideration and receives his assent, then the state law shall prevail on the issue.

governmental restraints on ‘personal liberty’ should be collectively tested against the guarantees of fairness, non-arbitrariness and reasonableness that were prescribedunder Articles 14, 19 and 21 of the Constitution.

“governmental restraints on ‘personal liberty’ should be collectively
tested against the guarantees of fairness, non-arbitrariness and
reasonableness that were prescribedunder Articles 14, 19 and 21 of the
Constitution. The Court developed a theory of ‘inter-relationship of rights’
to hold that governmental action which curtailed either of these rights should
meet the designated threshold for restraints on all ofthem. In this manner,
the Courts incorporated the guarantee of‘substantive due process’ into the
language of Article 21”

 the previous government decided to effect a significant restructuring in one channel of transferring funds to states. Centrally sponsored schemes – 146 in number – were first consolidated into 83, both through mergers and termination. Then, it was decided that instead of the funds for these being allocated to the relevant ministry at the Centre, which, consequently, effectively owned the scheme, the Union finance ministry would directly transmit the funds for each scheme to the state governments that were implementing them. 

A Finance Commission is set up every five years to recommend measures for sharing o resources between the Centr e and the States, mainly pertaining to the Tax Revenue collected by the Central Government.
Presently the recommendations made by the 13th Finance Commission are in effect (from 2010-11 to 2014-15), whereby 32 percent o f th e s h a r e a b le /d iv is ib le pool of Centr al tax r evenue is transferred to States every year and the Centre retains the remaining amount for the Union Budget.

The arrangements for federal financial relations were set up in the Government of India Act, 1935.The Finance Commission is a legacy of that time. Why not have a permanent finance commission which can regulate Centre-state financial relations in a transparent and constitutionally legitimate way?

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