Trends in Center – State Relations

Center – State Relations

• Till 1967, the Center – state relations by and large were smooth due to one- party rule at the Center and in most of the states.
• In 1967 elections, the Congress party was defeated in nine states and its position at the Center became weak. This changed political scenario heralded a new era in the Center – State relations.
• 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 Center-state relations.

Frictional Areas in Center – State Relations

• The areas for disagreement or conflict between Center and State government includes –
  • 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 states,
  • Role of Planning Commission in approving state projects,
  • Management of All-India Services (IAS, IPS, and IFS),
  • Use of electronic media for political purposes,
  • Appointment of enquiry commissions against the chief ministers,
  • Sharing of finances between Center and states,
  • Encroachment by the Center on the State List.

Committees on Center – State Relations

Administrative Reforms Commission (ARC)

• • • The Central government appointed a six-member ARC in 1966 under the chairmanship of Morarji Desai.
    • In final report of 1969, it made 22 recommendations for improving the Center-state relations. The important recommendations are –
      • • Establishment of an Inter-State Council under Article 263 of the Constitution.
        • Appointment of persons having long experience in public life and administration and non-partisan attitude as governors.
        • Delegation of powers to the maximum extent to the states.
        • Transferring of more financial resources to the states to reduce their dependency upon the Center.
        • Deployment of Central armed forces in the states either on their request or otherwise.
    • No action was taken by the Central government on the recommendations of the ARC.

Raja Mannar Committee

• • • In 1969, the DMK government in Tamil Nadu appointed a 3 member committee under the chairmanship of Dr. P.V. Rajamannar to examine the entire question of Center-state relations.
    • The committee submitted its report to the Tamil Nadu Government in 1971.
    • The Committee identified the following reasons for the prevailing unitary (centralisation) trends –
      • • Certain provisions in the Constitution which confer special powers on the Center.
        • One-party rule both at the Center and in the states.
        • Inadequacy of states’ fiscal resources and consequent dependence on the Center for financial assistance.
        • The institution of Central Planning and the role of the Planning Commission.
    • The important recommendations of the committee are as follows –
      • • An Inter-State Council should be set up immediately.
        • Finance Commission should be made a permanent body.
        • Planning Commission should be disbanded and its place should be taken by a statutory body.
        • Article 356, 357 and 365 (dealing with President’s Rule) should be totally omitted.
        • The provision that the state ministry holds office during the pleasure of the governor should be omitted.
        • Certain subjects of the Union List and the Concurrent List should be transferred to the State List.
        • The residuary powers should be allocated to the states.
        • All-India services should be abolished.

Anandpur Sahib Resolution

• • • In 1973, the Akali Dal (Punjab) adopted a resolution containing both political and religious demands in a meeting held at Anandpur Sahib in Punjab.
    • The resolution demanded that the Center’s jurisdiction should be restricted only to defence, foreign affairs, communications, and currency
    • The entire residuary powers should be vested in the states. It stated that the Constitution should be made federal in the real sense and should ensure equal authority and representation to all the states at the Center.

West Bengal Memorandum

• • • In 1977, the West Bengal Government (led by the Communists) published a memorandum on Center-state relations and sent to the Central government.
    • The memorandum, among others suggested the following recommendations –
      • • The word ‘union’ in the Constitution should be replaced by the word ‘federal’.
        • The jurisdiction of the Center should be confined to defence, foreign affairs, currency, communications and economic co-ordination.
        • All other subjects including the residuary should be vested in the states.
        • Article 356 and 357 and 360 should be repealed.
        • State’s consent should be made obligatory for formation of new states or reorganisation of existing states.
        • Of the total revenue raised by the Center from all sources, 75 % should be allocated to the states.
        • Rajya Sabha should have equal powers with that of the Lok Sabha.
        • There should be only Central and state services and the all India services should be abolished.
    • The Central government did not accept the demands made in the memorandum.

Sarkaria Commission

• • • In 1983, the Central government appointed a three-member Commission on Center- State relations under the chairmanship of R. S. Sarkaria.
    • The commission was asked to examine and review the working of existing arrangements between the Center and states in all spheres and recommend appropriate changes and measures.
    • It was initially given one year to complete its work, but its term was extended four times. It submitted it’s report in 1988.
    • The Commission did not favor structural changes and regarded the existing constitutional arrangements and principles relating to the institutions basically complete. But, it emphasised on the need for changes in the functional aspects.
    • The Commission made 247 recommendations to improve Center- state relations. The important recommendations are mentioned below –
      • • A permanent Inter-State Council called the Inter-Governmental Council should be set up under Article 263.
        • Article 356 (President’s Rule) should be used very sparingly, in extreme cases as a last resort when all the available alternatives fail.
        • The institution of All-India Services should be further strengthened and some more such services should be created.
        • The residuary powers of taxation should continue to remain with the Parliament, while the other residuary powers should be placed in the Concurrent List.
        • When the president withholds his assent to the state bills, the reasons should be communicated to the state government.
        • The zonal councils should be constituted afresh and reactivated to promote the spirit of federalism.
        • The Center should have powers to deploy its armed forces, even without the consent of states. However, it is desirable that the states should be consulted.
        • The Center should consult the states before making a law on a subject of the Concurrent List.
        • The procedure of consulting the chief minister in the appointment of the state governor should be prescribed in the Constitution itself.
        • The net proceeds of the corporation tax may be made permissibly shareable with the states.
        • The governor cannot dismiss the council of ministers so long as it commands a majority in the assembly.
        • The governor’s term of five years in a state should not be disturbed except for some extremely compelling reasons.
        • No commission of enquiry should be set up against a state minister unless a demand is made by the Parliament.
        • The surcharge on income tax should not be levied by the Center except for a specific purpose and for a strictly limited period.
        • Steps should be taken to uniformly implement the three language formula in its true spirit.
        • No change in the role of Rajya Sabha and Center’s power to reorganise the states.
        • The commissioner for linguistic minorities should be activated.
    • The Central government has implemented 180 (out of 247) recommendations of the Sarkaria Commission.
    • The most important is the establishment of the Inter-State Council in 1990.

Punchhi Commission

• • • The Second commission on Center-State Relations was set-up by the Government of India in April 2007 under the Chairmanship of M.M. Punchhi. It submitted its report in April 2010.
    • In finalizing the report, the Commission took extensive help from the Sarkaria Commission report, the National Commission to Review the Working of the Constitution (NCRWC) report and the Second ARC report.
    • In all, the Commission made over 310 recommendations, touching upon several significant areas in the working of Center-state relations. The important recommendations are mentioned below –
      • • The Union should occupy only that many of subjects in concurrent or overlapping jurisdiction which are absolutely necessary to achieve uniformity of policy in demonstrable national interest.
        • The Planning Commission has a crucial role in the current situation. But its role should be that of coordination rather that of micro managing sectoral plans of the Central ministries and the states.
        • Steps should be taken for the setting up of an Inter-State Trade and Commerce Commission under Article 307 read with Entry 42 of List-I.
        • This Commission should be vested with both advisory and executive roles with decision making powers.
        • As a Constitutional Body, the decisions of the Commission should be final and binding on all states as well as the Union of India.
        • Any party aggrieved with the decision of the Commission may prefer an appeal to the Supreme Court.

 

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