Why Federalism Matters for Group I
Centre-state relations is not just a constitutional topic — it is the operational reality of Tamil Nadu's governance. A Deputy Collector or DSP must understand:
- Which powers belong to the state, which to the Centre
- How fiscal transfers from Centre to state work
- Why Tamil Nadu and the Centre sometimes conflict (NEET, NIPER, Cauvery, language policy)
For Group I Mains, centre-state relations appears in questions on governance, political science, and Tamil Nadu-specific issues.
Constitutional Framework of Indian Federalism
Key Federal Features
| Feature | Constitutional Provision |
|---|---|
| Division of powers | 7th Schedule (Union, State, Concurrent Lists) |
| Independent judiciary | Part V, Part VI; single integrated judiciary |
| Written constitution | Supremacy of Constitution |
| Rigid amendment for federal provisions | Article 368 (special majority + state ratification needed) |
| Bicameralism at Centre | Article 79 (Lok Sabha + Rajya Sabha) |
Key Unitary Features (Centre's dominance)
| Feature | Constitutional Provision |
|---|---|
| Single citizenship | Article 5-11 |
| Integrated judiciary | Single Supreme Court, no separate state courts |
| No separate state constitutions | States governed under Part VI of the Constitution |
| Residuary powers with Centre | Article 248 — Parliament can legislate on any subject not in any list |
| Governor appointed by President | Article 155 — Centre's representative in states |
| Emergency provisions | Articles 352, 356, 360 — Centre can override states |
| All-India Services | Article 312 — IAS/IPS serve state governments but recruited by UPSC |
The Seventh Schedule: Division of Powers
Union List (List I) — 97 subjects
Centre has exclusive legislative power:
- Defence, external affairs, war and peace
- Banking, insurance, RBI regulation
- Railways, national highways, airways
- Atomic energy, nuclear weapons
- Income tax, corporation tax, customs
State List (List II) — 66 subjects
States have exclusive legislative power (subject to exceptions):
- Public order, police
- Public health, hospitals
- Agriculture, land rights
- Local government (municipalities, panchayats)
- State electricity, roads, bridges
- Industries not on Union List
Concurrent List (List III) — 52 subjects
Both Centre and states can legislate; Central law prevails in conflict:
- Education (added by 42nd Amendment, 1976)
- Forests, environment
- Labour unions, social security
- Marriage and divorce
- Criminal law (IPC, CrPC)
- Drugs and poison
Note: In case of conflict between central and state legislation on a Concurrent subject, central law prevails (Article 254). However, if a state law on a Concurrent subject gets Presidential assent, it may prevail over the central law in that state.
Legislative Relations: Key Provisions
Parliamentary Legislation over States (Exceptions)
Under certain conditions, Parliament can legislate on State List subjects:
| Condition | Article | What it allows |
|---|---|---|
| National interest (Rajya Sabha resolution) | Article 249 | RS can pass resolution by 2/3 majority; Parliament legislates on state subject for 1 year (renewable) |
| Emergency (Article 352) | Article 250 | Parliament can legislate on all subjects during national emergency |
| Two or more states request | Article 252 | Parliament may legislate for consenting states |
| International treaty obligation | Article 253 | Parliament can legislate on any subject to implement international treaties |
| President's Rule | Article 356 | Parliament (and President) can make laws for the state |
Administrative Relations
Governor's Role
The Governor is appointed by the President (effectively by the Centre) and serves at its pleasure. The Governor:
- Gives assent to state bills (or reserves them for President's consideration)
- Can invite CM to form government after elections
- Reports on constitutional breakdown (triggering Article 356)
- Has discretion in certain matters (appointing PM from hung assembly)
Tamil Nadu concern: Governors have been controversial when perceived as Centre's agents — withholding assent to bills, delaying swearing-in of elected CM.
All-India Services
IAS and IPS officers are recruited by the Union (UPSC) but allotted to State cadres. They serve under state government but:
- Can be called for Central deputation
- Service rules framed by Centre
- Ultimate control with Centre
This creates a unique dynamic: the District Collector (IAS) works under the state CM but their long-term career depends on Centre's policies.
Financial Relations
Constitutional Provisions
| Article | Provision |
|---|---|
| Article 265 | No tax without authority of law |
| Article 266 | Consolidated Fund of India and State |
| Article 268-293 | Taxation provisions; allocation between Centre and states |
| Article 280 | Finance Commission — constituted every 5 years |
| Article 293 | States can borrow only within India; borrowing limit set by Centre |
Finance Commission
The Finance Commission (Article 280) is a constitutional body that:
- Recommends distribution of central taxes between Centre and states (vertical devolution)
- Recommends distribution among states (horizontal devolution)
- Recommends grants-in-aid to states
Current (15th Finance Commission): Increased states' share of divisible pool to 41% (down from 42% in 14th FC, accounting for J&K becoming UT).
GST and Cooperative Federalism
Goods and Services Tax (101st Constitutional Amendment, 2016) created a unified market but raised federalism concerns:
- States lost their exclusive taxation power over goods and services
- GST Council (Article 279A) — decisions by voting (Centre has 1/3 votes; states have 2/3)
- States claimed GST Council's dominance by Centre threatens fiscal federalism
Tamil Nadu's GST concerns: Tamil Nadu is a net contributor to GST pool — it generates more revenue than it receives back. The devolution formula (population-based) disadvantages industrialised states.
Key Centre-State Conflicts and Tamil Nadu
1. Language Policy
- Article 343-351 — Official Languages
- Three-language formula — Central policy promotes Hindi; Tamil Nadu rejects Hindi as state second language
- 1965 anti-Hindi agitation: Tamil Nadu's strongest assertion of linguistic federalism
- Tamil Nadu follows two-language formula (Tamil + English) in schools
2. NEET and Education
- Education is a Concurrent List subject (Entry 25)
- Tamil Nadu argues NEET violates the state's ability to regulate medical admissions
- Tamil Nadu Legislature passed anti-NEET Bill (2021); required Presidential assent
- Governor's role in withholding assent became a constitutional controversy
3. Cauvery Water Dispute
- River water is a State List subject but inter-state rivers fall under Entry 56, Union List
- Parliament passed the Inter-State River Water Disputes Act, 1956
- Cauvery Water Disputes Tribunal (1990) → Supreme Court order (2018): 177.25 TMC to Tamil Nadu annually
- Shows how federal structure mediates inter-state natural resource conflicts
4. NIPER (National Institute of Pharmaceutical Education and Research)
- Tamil Nadu objected to the Central government's decision to establish NIPER in Ahmedabad over Hyderabad/Chennai, showing competition for Central institutions
5. Article 356 and Governor
- Tamil Nadu has experienced President's Rule multiple times (1976, 1988, etc.)
- S.R. Bommai v. Union of India (1994): Supreme Court ruled Article 356 use must be justified; floor test (if numbers are in doubt) required before dismissal; President's Rule can be challenged in court
Key Constitutional Cases
| Case | Year | Significance |
|---|---|---|
| State of West Bengal v. Union of India | 1963 | SC held Parliament can acquire state property under Entry 42 (Union List) |
| S.R. Bommai v. Union of India | 1994 | Laid down guidelines for Article 356; President's Rule subject to judicial review; floor test principle |
| Indra Sawhney v. Union of India | 1992 | Upheld 50% ceiling on reservations; Tamil Nadu's 69% challenged |
| State of Tamil Nadu v. Governor | Multiple | Disputes about Governor withholding bills or acting contrary to elected government's advice |
| NCT of Delhi v. Union of India | 2023 | Reaffirmed that elected government's advice must be followed by LG/Governor in most matters |
Important Commissions on Centre-State Relations
| Commission | Year | Key Recommendations |
|---|---|---|
| Sarkaria Commission | 1983–87 | Restraint in Article 356; strengthen ISC; greater consultation with states |
| Punchhi Commission | 2007–10 | More financial autonomy to states; Inter-State Council more active; review of Governor powers |
| NITI Aayog | 2015–present | Replaced Planning Commission; promotes cooperative federalism but critics say less state power than Planning Commission grants |
Quick Revision
| Article | Subject |
|---|---|
| 245-246 | Extent of laws; division of legislative powers |
| 249 | Parliament legislates on state subject on RS resolution |
| 252 | Parliament legislates for two or more consenting states |
| 263 | Inter-State Council |
| 279A | GST Council |
| 280 | Finance Commission |
| 356 | President's Rule |
| 360 | Financial Emergency |
| 7th Schedule | Three Lists |
| Feature | Union | State |
|---|---|---|
| Legislature | Two Houses | One (or Two) |
| Executive | President + PM + Cabinet | Governor + CM + Cabinet |
| Lists | Union List (97 subjects) | State List (66 subjects) |
| Residuary powers | Yes (Article 248) | No |
| Citizenship | Single citizenship | No separate citizenship |
Frequently Asked Questions
The Indian Constitution is described as 'quasi-federal' — it has federal features (division of powers between Centre and states via 7th Schedule, independent judiciary, written constitution, bicameralism at Centre) but also unitary features (single citizenship, strong Centre, no separate state constitutions, integrated judiciary, emergency provisions). B.R. Ambedkar called India 'a union of states, not a federation of states.'