Executive powers of States

The centre can direct the states in the execution of their executive powers in the following four cases.

1. Construction and maintenance of means of communication of national or military importance;
2. Matters related to the protection of railways in the states;
3. Instruction in mother tongue in the primary schools for linguistic minority children;
4. Formulation and execution of schemes that provide for the welfare of Scheduled Tribes in the states.
   • Financial Relations

Articles 268 to 293 under Part XII of the constitution consist of provisions that deal with the distribution of financial powers between the centre and the states.

The Parliament has the exclusive power to levy taxes on subjects in the union list. The State Legislatures have the exclusive power to levy taxes on subjects in the state list. Both the Parliament and the state legislatures have the power to levy taxes on subjects in the concurrent list. The residuary taxation powers are vested with the Parliament.

The proceeds of taxes collected upon subjects in the state list are completely retained by the states. The proceeds of taxes collected upon subjects in the union list are partially or completely allocated to the states.

Grants in Aid and Loans:

The central government is financially stronger than the state governments. In addition to the sharing of taxes with the state governments, the central government also provides grants-in-aid to the states. There are two types of grants namely, the statutory grants and the discretionary grants.

1. Statutory Grants:

Article 275 of the constitution enables the Parliament to provide grants-in-aid to the states for the following three purposes:

1. To promote the welfare of scheduled tribes in a state;
2. To improve the level of administration of scheduled areas in a state;
3. To provide financial assistance to a state, which is in need of such assistance.

These grants are provided to the states based on the recommendations of the Finance Commission.

2. Discretionary Grants:

Article 282 of the constitution enables both the central and the state governments to provide grants-in-aid for any public purpose even if the concerned matter does not fall within their scope of legislative powers. Under this provision, the central government provides grants-in-aid to the states based on the recommendations of NITI Aayog.

16. Demand for Greater State Autonomy and Centre-State Relations
    • Commissions on Centre-State Relations

There have always been tensions between the centre and the states in the matters of distribution of legislative, administrative and financial powers. To resolve the strain between the centre and the states and ensure smooth functioning of the federal polity, various commissions and committees have been instituted from time to time.

1. Administrative Reforms Commission(1969) on centre-state relations:

The following are the important recommendations given by the ARC to improve the centre-state relations.

1. Establishment of the inter-state council under article 263;
2. Appointment of persons with non-partisan attitudes as Governors of states;
3. Delegating more legislative and executive powers to the states;
4. Transfer of more financial resources to the states;
5. Deployment of central armed forces in the states only on the request of states.
   2. RAJAMANNAR COMMITTEE:

In 1969, the government of Tamil Nadu appointed a committee under Dr.P.V. Rajamannar to study the centre-state relations and suggest recommendations for the amendment of the constitution to secure more autonomy to the states. The following are the important recommendations provided by the committee.

1. Establishment of the inter-state council under article 263;
2. Finance Commission should be made a permanent body;
3. Planning Commission should be disbanded;
4. Provisions of the constitution that provide for President’s rule should be repealed;
5. Transferring more subjects to the state list;
6. Transferring the residuary powers to the states;
7. Abolition of All-India services.
   3. Anandpur Sahib Resolution:

In 1973, the Akali Dal passed a resolution, demanding reorganisation of centre-state relations. The following are the important demands of the resolution.

1. Restriction of powers of the centre only to the Defence, External Affairs, Communications and Currency;
2. Transferring the residuary powers to the states;
3. Reorganisation of the Rajya Sabha to provide for equal authority and representation to the states.
   4. West Bengal Memorandum:

In 1977, the government of West Bengal prepared a memorandum and sent it to the central government. The following are the important suggestions held in the memorandum.

1. Restriction of powers of the centre only to the Defence, External Affairs, Economic Coordination, Communications and Currency;
2. Transferring the residuary powers to the states;
3. Abolition of All-India services;
4. Providing equal powers to Rajya Sabha on par with Lok Sabha;
5. The Concurrence of states should be made compulsory in the matters of reorganisation of states.
   5. Sarkaria Commission:

In 1983, the central government appointed a commission under Justice Ranjit Singh Sarkaria to study the centre-state relations and provide necessary recommendations to strengthen the cooperation between the centre and the states. The following are the important recommendations provided by the commission.

1. Establishment of a permanent inter-state council under article 263;
2. Restriction over the imposition of President’s rule in the states;
3. Strengthening of All-India services;
4. The Organisation of zonal council afresh;
5. Deployment of central armed forces in the states even without the request of the states. However, the centre should consult the states in this regard;
6. Except for the residuary taxation powers, other residuary powers should be transferred to the concurrent list;
7. When the President withholds a bill passed by the state legislature, he has to explain the reason to the concerned state government within a specified period of time.
8. Governor cannot dismiss the council of ministers in the states as long as they enjoy majority support in the house;
9. Governors’ term of office should not be curtailed except under extreme circumstances.