FridayJunk: indian polity book series 35

Indian Polity - Inter-State Relations

Which of the following is NOT a correct statement regarding the Inter-State Council? - (3) (Telangana Constables-2019)

The Prime Minister is its Chairman
Chief Ministers of all states are its members
It was established based on the recommendations of the Justice J.S. Verma Committee
Administrators of Union Territories without legislatures are members

Disputes related to River Waters:

Article 262 explains the resolution of inter-state river water disputes.
In 1956, Parliament enacted the Inter-State River Water Disputes Act.
According to this, special tribunals are set up to resolve inter-state river water disputes.
According to Article 262, Parliament can enact a law to quickly resolve inter-state river water disputes by setting up a tribunal.

Important River Water Tribunals

S.No	Name	Year
1.	Krishna River Water Tribunal	1969
2.	Godavari River Water Tribunal	1969
3.	Narmada River Water Tribunal	1969
4.	Ravi-Beas River Water Tribunal	1986
5.	Kaveri River Water Tribunal	1990
6.	2nd Krishna River Water Tribunal	2004
7.	Vamsadhara River Water Tribunal	2010
8.	Mahadayi River Water Tribunal	2010

Inter State Council

Article 263 explains the establishment of the Inter-State Council.

The President appoints the Inter-State Council to resolve disputes between states, to discuss matters of common interest to the Center or all states or some states.

The Sarkaria Commission recommended the Inter-State Council.

The Inter-State Council was established in 1990 when V.P. Singh was the Prime Minister.

The Prime Minister acts as the Chairman of the Inter-State Council.

The Inter-State Council consists of the Chief Ministers of all states and six Union Cabinet Ministers, including the Union Home Minister.

Chief Ministers of Union Territories with legislatures and administrators of other Union Territories are also members.

The Inter-State Council should meet at least three times a year.

Zonal Councils:

Zonal Councils were established based on the States Reorganisation Act, 1956.

Zonal Councils are statutory.

India has been divided into 5 Zonal Councils.

Number	Name	Members	Headquarters
1	Northern Zonal Council	Jammu & Kashmir, Himachal Pradesh, Punjab, Haryana, Delhi, Rajasthan, Chandigarh	New Delhi
2	Central Zonal Council	UP, Uttarakhand, Chhattisgarh, Madhya Pradesh	Allahabad
3	Eastern Zonal Council	Bihar, Jharkhand, West Bengal, Odisha	Kolkata
4	Western Zonal Council	Gujarat, Maharashtra, Goa, Dadra & Nagar Haveli, Daman & Diu	Mumbai
5	Southern Zonal Council	Andhra Pradesh, Telangana, Karnataka, Tamil Nadu, Kerala, Puducherry	Chennai

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The North Eastern States Zonal Council was established in 1972. Its membership includes - 7 North Eastern States, Sikkim

The headquarters of the North Eastern States Zonal Council is in Shillong.

The Union Home Minister acts as the Chairman of all Zonal Councils.

Out of the Chief Ministers of the states in each Zonal Council, one person acts as the Vice-Chairman of that Zonal Council for one year on a rotation basis.

Maintaining the integrity of the country, controlling regionalism, linguism, and stateism are the functions of the Zonal Council.

Centre - State Financial Relations:

Articles 264 to 300(A) in Part 12 of the Constitution contain the financial relations between the Centre and the States.

According to Article 264, Finance Commission means the Finance Commission established under Article 280.

According to Article 265, no tax can be levied or collected except by authority of law.

There is a clear division regarding the imposition of taxes between the Centre and the States.

Taxes Levied by the Central Government

Export and Import Duties
Corporation Tax
Tax on Non-Agricultural Income
Tax on Capital Value
Excise Duty on Tobacco
Inter-State Transport Tax
Stock Market, Stock Exchange Tax
Inheritance Tax
Tax on Sale of Newspapers
Sales Tax in Inter-State Trade
Tax on Services
Estate Duty on Non-agricultural lands
Tax on transfer of cheques, promissory notes
Tax on goods in inter-state trade

Taxes Levied by the State Government

Commercial Tax
Land Revenue
Tax on Agricultural Income
Estate Duty on Agricultural Lands
Tax on Alcohol
Tax on Immovable Property
Tax on Minerals
Tax on goods transported into local areas (Octroi Tax)
Inheritance Tax on Agricultural Lands
Tax on Consumption and Sale of Electricity
Toll Tax
Tax on Animals
Tax on Motor Vehicles
Tax on Road and Water Transport
Tax on Advertisements
Entertainment Tax
Custody Taxes
Profession Tax
Stamp Duty on documents other than those in the Union List
Other fees related to matters in the State List

Residuary Taxes:

Taxes not mentioned in the Central, State and Concurrent Lists are called Residuary Taxes.

The Center levies taxes on residuary subjects.

Examples:

Gift Tax
Wealth Tax
Expenditure Tax

Article 266: Explains the Consolidated Fund of India and the Consolidated Fund of the State.

Article 267: Explains the Contingency Fund of India.

The Contingency Fund of India is under the control of the President.
The Finance Secretary manages this.
The President can spend from this fund with the permission of the state before Parliament's approval for unexpected expenses.
The Contingency Fund of the State is under the control of the State Governor.
The Contingency Fund is used in situations like unexpected natural disasters.

Article 268 explains the taxes levied by the Center but collected and appropriated by the states.

Article 269 explains the taxes levied and collected by the Central Government but assigned to the State Governments.

Article 270: Taxes levied and collected by the Center, distributed between the Center and the States.

Examples: Tax on Non-Agricultural Income, Excise Duties.

Article 275 explains the Central grants or assistance to some states.

Article 280 explains the appointment, structure, and functions of the Finance Commission.

Article 281: The President must submit the recommendations of the Finance Commission to Parliament.

Article 282: Parliament gives funds to any state for public welfare on the recommendation of the Finance Commission.

Article 285: The State Government cannot levy taxes on the properties of the Center.

Article 286: Restrictions on the imposition of tax on the sale or purchase of goods. State Governments cannot levy taxes on the sale or purchase of goods outside the state and on goods imported or exported in India.

Article 287: Exemption from tax on electricity is given to the Center.

Article 292: The Center can take loans within the country or abroad.

Article 293: States have the power to take loans only within the country.

Commissions appointed to study Centre-State relations:

1. First Administrative Reforms Commission - 1966:

Appointed in 1966 with 6 members.
Morarji Desai was its chairman.
This committee comprehensively studied Centre-State relations.
The period when this committee submitted its report was 1969.
Second Chairman - K. Hanumanthaiah (1967-69). (Due to Morarji Desai's resignation)
The study group committee chairman appointed by the First Administrative Reforms Commission to study Centre-State relations was M.C. Setalvad.
Setalvad's suggestions:
1. There is no need to amend the Constitution to give more powers to the states.
2. Establish an Inter-State Council.
3. Article 356 should not be misused.
4. One economist from each state should be given a place in the Planning Commission.

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2. Rajamannar Committee (1969):

This committee was appointed by the D.M.K. government in Tamil Nadu.
This committee was appointed in 1969.
It submitted its report in 1971.
Committee Chairman: P.V. Rajamannar (Former Chief Justice of Madras High Court).

Members of this committee: Lakshmanaswamy Mudaliar, P. Chandra Reddy.
This Committee's recommendations:
1. IAS, IPS, IFS, which are All India Services, should be abolished.
2. An Inter-State Council should be established.
3. Disputes between states should be resolved only through the Supreme Court.
4. The Chief Minister should be compulsorily consulted when appointing the Governor.
5. States should be given a share in Corporation Tax.
6. States should have the power to make laws on residuary powers.
7. Equal representation should be given to all states in the Rajya Sabha.
8. The power of the President to nominate 12 members to the Rajya Sabha should be abolished.
9. Articles 355, 356, 365 should be repealed.
10. The state legislature should be given importance in the removal of High Court judges.

11. Equal representation / representation should be given to all states in the Union Cabinet.

12. The power of Parliament to repeal a law made under Article 252 should be given to the states.

13. The power to make laws on subjects in the Concurrent List should be given only to the states.

14. When dismissing and forming governments, the Governor should use the state legislature as a platform.

3. Anandpur Sahib Resolution (1973)

The Akali Dal party in Punjab held a meeting at Anandpur Sahib village to strengthen Centre-State relations.
Key points:
1. Areas separated from Punjab state should be re-merged into Punjab.
2. Chandigarh should be developed as an international airport.
3. Protection should be provided to Sikhs living outside Punjab.
4. A real federation like America should be established.
5. Articles 355, 356, 365 should be repealed.

4. West Bengal Memorandum (1977):

The Left Front government (CPM) in Bengal, led by Jyoti Basu, made these suggestions in view of the special rights of the states.
Recommendations:
1. The word Union in the Constitution should be replaced with Federation.
2. Equal powers should be given to the Rajya Sabha with the Lok Sabha.
3. The three-language formula should be implemented effectively.
4. All India Services should be abolished.
5. Residuary powers, supremacy over the Concurrent List should be given to the states.

5. R.S. Sarkaria Commission (1983):

The first commission appointed by the Central Government to examine Centre-State relations is the Sarkaria Commission.

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This commission was formed in 1983.
Indira Gandhi was the Prime Minister who appointed the Sarkaria Commission.
Commission Chairman - R.S. Sarkaria (Former Supreme Court Judge).
Other members of the commission - Sivaraman, S.R. Sen, L.N. Sinha, R.M. Subrahmanyam (Secretary).

The Sarkaria Commission submitted its report in 1987.
The report submitted by the commission was published in 1988.
Prime Minister at that time - Rajiv Gandhi.
The number of recommendations made by the Sarkaria Commission is 247.
Major recommendations:
1. All India Services should be expanded.
2. Tax on agricultural income should be levied.
3. States should be represented in the Planning Commission.
4. The name of the Inter-State Council should be changed to Inter-State Advisory Council.
5. The name of the National Development Council should be changed to National Economic Development Council.
6. State governments should be consulted when nationalizing mines.
7. A person who does not have a political background should be appointed as the Governor.
8. Priority should be given to the states in the use of broadcasting media.
9. The Chief Minister of the concerned state should be consulted when appointing the Governor.

10. A person who is not from his own state should be appointed as the Governor of the concerned state.
11. States should be given a share in Corporation Tax.
12. Article 356 should be used only as a last resort.

6. Constitution Review Commission:

This commission was formed in the year - 2000
It submitted its report in 2002.
Commission Chairman - M.N. Venkatachalaiah.
Other members of the commission:
1. B.P. Jeevan Reddy
2. G. Punnaiah
3. R.S. Sarkaria
4. Subhash Kashyap
5. P.A. Sangma
6. Soli Sorabjee
7. Parasharan
8. Sumit Kulkarni
9. Abid Hussain
10. C.J. Somayajulu

Key Recommendations
1. The Chief Minister of the concerned state should be consulted while appointing a governor and the constitution should be amended accordingly .
2. The governor should act on the bill reserved for his approval within 6 months.
3. The meetings of interstate council should be conducted twice every year.
4. The verdict of the Water Resources Tribunal should be implemented within two months.
5. Before using Article 356, both the Houses of Parliament should give their assent, then only President's rule should be imposed by dismissing state governments.

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Wednesday, February 26, 2025

indian polity book series 35