Federal Structure and Distribution of Powers between the Union and States

What the official syllabus says

GPSC Main Examination, Paper V: General Studies-II, (A) Indian Polity and Constitution:

• Issues and challenges pertaining to the Federal structure.
• Distribution of powers between the Union and States: Issues and challenges.

Topics in detail

Nature of Indian federalism

• Article 1: India, that is Bharat, a Union of States; why the word federation is not used
• Federal features: dual polity, written Constitution, division of powers, rigid amendment for federal provisions, independent judiciary, bicameral Parliament
• Unitary features: strong Centre, single Constitution and citizenship, Parliament's power to change State boundaries (Article 3), appointment of Governors, all-India services, integrated audit and elections, emergency provisions
• Descriptions of Indian federalism: quasi-federal, co-operative federalism, competitive federalism

Legislative relations (Articles 245 to 255)

• Territorial extent of laws (Article 245)
• Seventh Schedule: Union List, State List, Concurrent List; residuary powers with Parliament (Article 248)
• Parliament legislating on State subjects: Rajya Sabha resolution (Article 249), national emergency (Article 250), consent of two or more States (Article 252), implementing international agreements (Article 253), President's Rule
• Repugnancy between Union and State laws (Article 254)
• Governor reserving State bills for the President's consideration

Administrative relations (Articles 256 to 263)

• Obligation of States and of the Union; directions to States
• Delegation of functions between the Union and States (Article 258 and 258A)
• All-India services (Article 312) as a link between the Union and States
• Inter-State water disputes (Article 262) and the Inter-State River Water Disputes Act, 1956
• Inter-State Council (Article 263), set up in 1990
• Zonal councils under the States Reorganisation Act, 1956: Gujarat is in the Western Zonal Council

Financial relations (Articles 264 to 293)

• Taxation powers of the Union and States; Goods and Services Tax and the GST Council (Article 279A)
• Sharing of central taxes; Finance Commission (Article 280) and its recommendations on vertical and horizontal devolution
• Grants-in-aid: statutory grants (Article 275) and discretionary grants (Article 282)
• Borrowing powers of the States (Article 293)
• Centrally sponsored schemes and conditional transfers

Emergency provisions and federalism

• National emergency (Article 352): Parliament may legislate on State subjects and the Union may direct States
• President's Rule (Article 356): State legislature suspended or dissolved; Parliament or the President legislates for the State
• Financial emergency (Article 360): never proclaimed so far

Issues and challenges

• Role and discretion of the Governor; appointment and removal of Governors
• Use of Article 356 and the safeguards laid down in S. R. Bommai (1994)
• Fiscal imbalance: States' expenditure responsibilities larger than their revenue powers; cesses and surcharges outside the divisible pool
• Compensation and revenue concerns of States under GST
• Central agencies and law and order as a State subject
• Inter-State river water and boundary disputes; example: Narmada Water Disputes Tribunal (set up 1969, final award 1979) among Gujarat, Madhya Pradesh, Maharashtra and Rajasthan
• Demands for new States and the use of Article 3

Reform commissions

• Administrative Reforms Commission (1966) on Centre-State relations
• Rajamannar Committee (1969), appointed by Tamil Nadu
• Sarkaria Commission (set up 1983): Governors, Article 356, Inter-State Council
• Punchhi Commission (set up 2007)
• NITI Aayog (2015) in place of the Planning Commission, and its Governing Council of Chief Ministers

Overlaps

Fiscal federalism and GST also appear in the economy part of General Studies-III.