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Centre-State Relations

📊 High-Yield Data & Statistical Fact Sheet
  • Constitutional Structure: Regulates relations across three spheres: Legislative (Articles 245 to 255), Administrative (Articles 256 to 263), and Financial (Articles 268 to 293).
  • Development Spending Split:
    • Central Sector Schemes: 85% of outlay (fully funded and implemented by the Center).
    • Centrally Sponsored Schemes (CSS): 15% of outlay (co-financed by states, e.g., 60:40 or 90:10 ratios).
  • Seventh Schedule Lists (Article 246):
    • Union List: 100 subjects (Census, Railways, Defense, Foreign Affairs).
    • State List: 61 subjects (Public Order, Police, Health, Agriculture, Prisons).
    • Concurrent List: 52 subjects (Education, Forests, Wildlife, Marriage).
  • Tax Devolution Parameters (16th Finance Commission, 2026–2031):
    • Chaired by Dr. Arvind Panagariya.
    • Vertical Devolution: Retained 41% devolution of the divisible pool to the States.
    • Horizontal Devolution Parameters: Income Distance (42.5%), 2011 Population (17.5%), Area (10%), Forest/Ecology (10%), Demographic Performance (10%), and a new GDP Contribution (10%) parameter. Discontinued Post Devolution Revenue Deficit Grants (PDRDG).
  • Article 365 (President's Rule link): If a state fails to comply with executive directions issued by the Center, it provides grounds for the President to declare a failure of constitutional machinery under Article 356.

Central Development Schemes Allocation Share (%)

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1. LEGISLATIVE RELATIONS (ARTICLES 245 TO 255)


LEGISLATIVE RELATIONS (ARTICLES 245 TO 255)

LEGISLATIVE RELATIONS (ARTICLES 245 TO 255)
Analyze key facts and concepts related to LEGISLATIVE RELATIONS (ARTICLES 245 TO 255).
- Territorial Jurisdiction (Article 245): - Parliament can legislate for the whole or any part of the territory of India, with extra-territorial jurisdiction (laws apply to Indian citizens and property abroad). - State Legislatures can make laws only for the territory of their concerned state. - Residuary Powers (Article 248): - Vested exclusively in Parliament (includes the power to levy residuary taxes). - Parliamentary Legislation on State Subjects (Exceptions): - Article 249 (National Interest): If Rajya Sabha passes a resolution by not less than two-thirds of members present and voting, Parliament can legislate on a State List subject (valid for 1 year at a time). - Article 250 (National Emergency): Parliament is empowered to legislate on any State List subject during a National Emergency (valid until 6 months after the Emergency ends). - Article 252 (Request by States): If two or more states pass resolutions requesting Parliament to legislate, Parliament can make a law. It applies only to the consenting states, and only Parliament can amend or repeal it. - Article 253 (Treaty Implementation): Parliament can legislate on state subjects to implement international treaties, agreements, or conventions without requiring any state consent. - Article 254(2) (Repugnancy Rule): In case of a conflict between a central and state law on a Concurrent List subject, the central law prevails. However, the state law will prevail in that state if it has received the President's prior assent.

2. ADMINISTRATIVE RELATIONS (ARTICLES 256 TO 263)


ADMINISTRATIVE RELATIONS (ARTICLES 256 TO 263)

ADMINISTRATIVE RELATIONS (ARTICLES 256 TO 263)
Analyze key facts and concepts related to ADMINISTRATIVE RELATIONS (ARTICLES 256 TO 263).
- compliance Obligations (Article 256 & 257): - The executive power of every state must ensure compliance with laws made by Parliament. - The Center can issue directions to states regarding:
    - Construction and maintenance of communications declared to be of national or military importance. - Protection of railways within the state. - Provision of primary-level mother-tongue instruction for linguistic minorities (Article 350A). - Execution of welfare schemes for Scheduled Tribes within the state.
- All-India Services (Article 312): - Parliament can create a new All-India Service (e.g., Indian Forest Service created in 1966) if the Rajya Sabha passes a resolution supported by not less than two-thirds of members present and voting. - Recruited and trained by the Center, but serve both levels; ultimate disciplinary authority rests with the Center, while immediate suspension rests with the State.

3. FINANCIAL RELATIONS (ARTICLES 268–293) & COMMISSION REPORTS


FINANCIAL RELATIONS (ARTICLES 268–293) & COMMISSION REPORTS

FINANCIAL RELATIONS (ARTICLES 268–293) & COMMISSION REPORTS
Analyze key facts and concepts related to FINANCIAL RELATIONS (ARTICLES 268–293) & COMMISSION REPORTS.
- Tax Distribution Structure: - Article 268: Levied by the Union but collected and appropriated by the States (e.g., stamp duties). - Article 269: Levied and collected by the Union but assigned to the States (e.g., taxes on inter-state trade). - Article 269A: Integrated GST (IGST)—shared between Center and States as recommended by the GST Council. - Article 270: Levied, collected, and shared between the Union and States based on Finance Commission recommendations. - Article 271: Surcharges are levied exclusively by the Union and are not shared with the States. GST is exempt from surcharges. - Grants-in-Aid: - Article 275 (Statutory Grants): Charged on the Consolidated Fund of India; recommended by the Finance Commission. - Article 282 (Discretionary Grants): Spent by the Center or States for public purposes; not bound by FC recommendations.
```text [Sarkaria Commission 1988] ➔ Art 356 as last resort; Eminent outsider as Governor [Punchhi Commission 2010] ➔ Localized Emergency; Impeachment for Governor removal [Kurian Joseph TN Comm 2025] ➔ Tamil Nadu State Autonomy & Federalism Committee ```

QUICK REVISION BOX


  • Seventh Schedule: Union (100), State (61), Concurrent (52). Center prevails in concurrent conflicts.
  • Article 248: Residuary powers vest exclusively in Parliament.
  • Article 249: Rajya Sabha resolution (2/3rd PV) authorizes Parliament to legislate on State List (1 year).
  • Article 253: Parliament can legislate on state subjects to implement international treaties.
  • Article 256/257: State executive must comply with Union directions.
  • Article 312: Rajya Sabha has exclusive power to launch a new All-India Service (2/3rd PV).
  • Surcharges (Article 271): Vested exclusively in the Union (not shared with States).
  • 16th Finance Commission: Vertical devolution maintained at 41% (Arvind Panagariya); introduces 10% GDP Contribution horizontal parameter.
  • State Autonomy Committee: Kurian Joseph Committee established by Tamil Nadu in 2025.

Notes updated up to March 2026. Sources: 16th Finance Commission Report, Kurian Joseph Committee.