Centre State Relations Case Study

Trends in Centre-State Relations
Till 1967, the centre-state relations by and large were smooth due to one-party rule at the Centre and in most of the states. In 1967 elections, the Congress Party was defeated in nine states and its position at the Centre became weak. This changed political scenario heralded a new era in the Centre-state relations. The non-Congress Governments in the states opposed the increasing centralization 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 Centre-state relations. (Austin 1966)

Tension Areas in Centre-State Relations
The issues which created tensions and conflicts between
Management of All-India Services (IAS,IPS and IFS)
9. Use of electronic media for political purposes
10. Appointment of enquiry commissions against the chief ministers
11. Sharing of finances between the Centre and states
12. Encroachment by the Centre on the state list (Narayan 2013)

The issues in Centre-state relations have been under consideration since the mid-1960s. In this direction, the following developments have taken place.

Administrative Reforms Commission
The Central government appointed a six-member Administrative Reforms Commission (ARC) in 1966 under the chairmanship of Morarji Desai (followed by K Hanumanthayya)
The important recommendations regarding Centre-state relations are:
1. Establishment of an Inter-state Council under Article 263of the Constitution.
2. Appointment of persons having long experience in public life and administration and non-partisan attitude as governors.
3. Delegation of powers to the maximum extent to the states.
4. Transferring of more financial resources to the states to reduce their dependency upon the centre.
5. Deployment of Central armed forces in the states on their request or otherwise.
No action was taken by the Central government on the recommendations of the ARC.

Sarkaria
A permanent Inter-State Council called the Inter-Governmental Council to be set up under Article 263.
2. Article 356 (President’s Rule) should be used sparingly, in extreme cases as a last resort when all the available alternatives fail.
3. The institution of All-India Services should be further strengthened and some more such services should be created.
4. The residuary powers of taxation should continue to remain with the Parliament, while the other residuary powers should be places in the Concurrent List.
5. When the president withholds his assent to the state bills, the reasons should be communicated to the State government.
6. The National Development Council (NDC) should be renamed as National Economic and Development Council (NEDC).
7. The zonal councils should be constituted afresh and reactivated to promote the spirit of federalism.
8. The Centre should have the powers to deploy its armed forces, even without the consent of the states. However, it is desirable that the states should be consulted.
9. The Centre should consult the states before making a law on a subject of the concurrent list.
10. The procedure of consulting the chief minister in the appointment of the state governor should be prescribed in the Constitution