Federal System and Centre-State Relations
🟢 Lite — Quick Review (1h–1d)
Rapid summary for last-minute revision before your exam.
Federal System — Key Facts for BPSC
- India is a “quasi-federal” — strong unitary features with federal structure
- Three Lists: Union List (97 subjects), State List (66 subjects), Concurrent List (47 subjects)
- Residuary powers: With Parliament (Article 248 + Item 97 of Union List)
- Z违犯: 7th Schedule, Article 246
- Article 1: “India, that is Bharat, is a Union of States” — not “Federation of States”
- Fifth Schedule: Tribal areas governance (separate from the three lists)
- Articles 256-263: Administrative relations between Centre and States
⚡ Exam tip: BPSC asks about quasi-federal nature, lists and subjects, residuary powers (with Parliament), and article references. The phrase “Union of States” (not “Federation”) in Article 1 is important.
🟡 Standard — Regular Study (2d–2mo)
Standard content for students with a few days to months.
The Federal Structure of India
What Makes India Federal?
Article 1: “India, that is Bharat, is a Union of States”
- Key word: “Union” — not “Federation”
- Significance: States do not have right to secede (unlike USA where states can leave)
- Single constitution for all states (not separate state constitutions)
Key Federal Features:
- Division of powers — Union List, State List, Concurrent List
- Supremacy of Constitution — neither Centre nor State can override
- Independent judiciary — Supreme Court resolves Centre-State disputes
- Representational governments — states have their own governments
But India is Quasi-Federal because:
- Emergency powers (Article 352) — Centre can take over states
- Article 356 — President’s Rule in states (Centre controls state governments)
- Governor appointed by President — Centre’s representative in states
- Residuary powers with Parliament — not states
- Article 368 — Parliament can amend state subjects (with conditions)
Three Lists (7th Schedule)
Union List (Article 246, List I) — 97 Subjects
Subjects under Parliament’s exclusive jurisdiction:
- Defence, Army, Navy, Air Force
- External affairs — foreign policy, treaties, diplomatic relations
- War and peace — declaring war, making peace
- Citizenship — nationality, passports, visas
- Railways — major railways (broad gauge), railway courts
- Shipping — major ports, shipping corporations
- Aviation — civil aviation, airports
- Posts and Telegraphs — communication
- Currency and Coinage — RBI, monetary policy
- Banking — RBI, banking regulation
- Insurance — life and general insurance
- Companies — company law
- Income Tax — direct taxes (except agriculture)
- Customs and Excise — customs, central excise
- Atomic energy — nuclear energy policy
- Foreign trade — import/export regulation
- Inter-state trade — trade across state boundaries
- Sanctuaries — national parks, wild life
Important for BPSC: Defence, External Affairs, Currency, Banking, Railways are exclusively Union subjects.
State List (Article 246, List II) — 66 Subjects
Subjects under State Legislature’s exclusive jurisdiction:
- Police — law and order, criminal law (IPC)
- Prisons — prison administration
- Land — land reforms, agriculture
- Forests — state forests (except sanctuaries)
- Agriculture — farming, irrigation
- Local government — municipal corporations, panchayats
- Education — state universities, school education (higher education)
- Public health — sanitation, hospitals
- Roads — state highways, district roads
- Water — irrigation, water supply
- GST (now) — replaced previous taxes (after 101st Amendment)
- Animal husbandry — cattle, veterinary services
- Markets and fairs — state mandis
- Cultural affairs — state museums, archives
Note: After 101st Amendment (2016) — Goods and Services Tax (GST) is now in Concurrent List (was previously VAT, entertainment tax in State List).
Concurrent List (Article 246, List III) — 47 Subjects
Subjects where both Parliament and State Legislature can make laws:
- Criminal law — IPC (except portions in Union List), Criminal Procedure Code
- Civil law — Indian Contract Act, Evidence Act, Transfer of Property Act
- Marriage and divorce — personal laws (Hindu Marriage Act, Muslim Personal Law)
- Bankruptcy and insolvency —
- Trusts and endowments — religious trusts
- Adulteration — food, drugs
- Vital statistics — birth and death registration
- Labour law — factories, industrial disputes
- Education — federal law on higher education (schools in State List)
- Environmental protection — forests (except sanctuaries), pollution
- Population control — family planning
- Charitable institutions — NGOs, trusts
Important: In case of conflict between Union and State law on Concurrent List, Union law prevails (Article 254).
Residuary Powers
Article 248: Parliament has exclusive power to make laws on subjects not in any List.
Item 97, Union List: “Any other matter not enumerated in List II or List III”
- Includes: Cyber law, Artificial Intelligence, Online content regulation
Important:
- States have no residuary powers — all residual subjects go to Centre
- Tamil Nadu challenged this (1968) — Supreme Court upheld Centre’s residuary power
Post-GST changes:
- GST Council (Article 279A) created — jointly governs indirect taxes
- All indirect taxes now under GST (both Centre and State share)
- Residuary still includes: income tax, customs, excise on petroleum
🔴 Extended — Deep Study (3mo+)
Comprehensive coverage for students on a longer study timeline.
Administrative Relations (Articles 256-263)
Key Provisions
Article 256: State must comply with Union laws — “The executive power of every State shall be exercised so as to ensure compliance with the laws made by Parliament…”
- If state fails → President can direct state to comply
Article 257: Control of States over Union instruments
- States cannot impede Union property or personnel
- Union can use state’s resources in emergencies
Article 258: President’s power to restrict state executive power in national interest
- Can empower Centre officers to carry out Union functions in states
- Example: Central government officers can work in states during elections (Election Commission)
Article 258A: States can request Union to transfer Union officers to states (for specific purposes)
Article 259: Armed forces can be deployed in states only with state’s consent (except during emergency)
Article 260: President’s power to undertake functions in states on state government’s request
- Can administer any territory on state’s behalf (not used in practice)
Article 261: Full faith and credit between states — “Judgments, records, and proceedings of one state shall be binding in another”
- Interstate recognition of court orders (divorce, property)
Centre-State Relations: Debates
Issues in Centre-State Relations
1. Emergency Powers (Article 356):
- Centre can dismiss state governments (after Bommai case, 1994 — requires constitutional breakdown)
- States argue: Used for political purposes (1975-77 Emergency period)
- Bommai case limited political use — now must be constitutional justification
2. Governor’s Role:
- Governor appointed by President (Centre’s agent)
- States argue: Governors act on Centre’s instructions
- Constitutional role: Governor should act on CM’s advice (not Centre’s)
- 92nd Amendment (2003) proposed: Governor should be appointed after consulting CM — not fully implemented
3. Finance Commission (Article 280):
- Finance Commission recommends tax sharing between Centre and States
- 15th Finance Commission (2020): Recommended 41% of divisible pool to states (was 42% in 14th FC)
- Dispute: States argue for higher share
4. Inter-State Council (Article 263):
- Created by 73rd Amendment (1992) — never met regularly
- Purpose: Coordination between states on common subjects
- Criticism: Not effective — states have limited role
The S.R. Bommai Case (1994)
Background: In 1988, President’s Rule was imposed in several states after elections, citing political reasons.
Supreme Court held:
- Article 356 is an extreme measure — only for breakdown of constitutional machinery
- Political considerations cannot justify President’s Rule
- State must be heard before imposing Article 356
- Judicial review of President’s satisfaction is allowed
- Dissolution of Assembly after imposing President’s Rule requires parliamentary approval
Impact: After Bommai, President’s Rule imposed less frequently (1994-2024: only 6-7 times vs. 50+ times before 1994)
Parliament’s Power Over State Subjects
Article 249: National Interest
Article 249: If Rajya Sabha passes a resolution (by 2/3 majority) that “certain subjects in State List are of national importance” — Parliament can make laws on those subjects.
Duration:
- Resolution valid for 1 year
- Can be extended for another year
- Maximum 5 years in total (then must be removed from resolution scope)
Used: Only twice — for air travel (1952) and goods and services tax (2000)
Article 252: Parliamentary Legislation for States
Article 252: If two or more states pass a resolution requesting Parliament to make law on a State List subject — Parliament can make that law for those states.
States can later withdraw by passing a resolution
Used: For some environmental laws (Environmental Protection Act, 1986)
Article 253: Treaty and International Agreements
Article 253: Parliament can make laws to implement international treaties (even on State List subjects).
Examples:
- WTO agreements (trade — State subject, but Parliament legislated)
- Paris Climate Accord (environment — State subject, but Parliament legislated)
- Vienna Convention on Consular Relations — India legislated despite state subject
Article 356 — Special Provisions
Article 356(4): If President’s Rule imposed, the Governor exercises the state’s executive powers (on President’s behalf).
Important: Governor acts as not CM — Governor reports to President (Centre), not to state legislature.
Zilla Parishad and Local Government
73rd Amendment (1992): Panchayati Raj
Article 243: Defines Panchayati Raj institutions:
- Zilla Parishad (District level)
- Panchayat Samiti (Block level)
- Gram Panchayat (Village level)
Key features:
- Elections mandatory every 5 years
- Reservation for SC/ST in seats and chairpersons
- Reservation for women (not less than 1/3)
- State Election Commission (not SEC) to conduct elections
74th Amendment (1992): Municipalities
Article 243P-243ZG: Urban local bodies:
- Nagar Palikas (Municipal Councils)
- Nagar Panchayats (transitional)
- Municipal Corporations (for big cities)
Key features:
- Direct elections
- Reservation for SC/ST and women
- Ward Committees for large corporations
Important Articles for BPSC
| Article | Content |
|---|---|
| Art. 1 | India is Union of States |
| Art. 245-254 | Distribution of powers |
| Art. 246 | Three Lists |
| Art. 248 | Residuary powers |
| Art. 249 | National interest resolution |
| Art. 252 | Two states request |
| Art. 253 | Treaty implementation |
| Art. 256 | State compliance with Union laws |
| Art. 263 | Inter-State Council |
| Art. 279A | GST Council |
| Art. 280 | Finance Commission |
Practice Questions (BPSC Pattern)
-
In which schedule are the three lists found?
- (a) Third Schedule
- (b) Fifth Schedule
- (c) Seventh Schedule
- (d) Ninth Schedule
-
Residuary powers in India rest with:
- (a) State
- (b) Parliament
- (c) Concurrent List
- (d) President
-
The case which laid down guidelines for President’s Rule is:
- (a) Kesavananda Bharati
- (b) Bommai
- (c) Minerva Mills
- (d) Golak Nath
-
After 101st Amendment, which tax comes under Concurrent List?
- (a) Income tax
- (b) Customs duty
- (c) Goods and Services Tax
- (d) Property tax
Answers: 1(c), 2(b), 3(b), 4(c)
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