Elaborately discuss about the Union and State Relations.

Framework of Federal Governance

The Constitution of India establishes a federal system of government with a clear division of powers between the Union (Central Government) and the State Governments. However, the Indian federal structure is often described as “quasi-federal” or “federal with unitary bias” because it contains strong centralizing features to maintain national unity and administrative efficiency. The relationship between the Union and the States is governed primarily by Parts XI and XII of the Constitution, covering legislative, administrative, and financial relations. Understanding these relations is essential to analyze how power is shared, coordinated, and balanced among different layers of government.

Legislative Relations (Articles 245–255)

The legislative relations define which level of government can make laws on which subjects. The division of legislative powers is provided in Article 246, supported by the Seventh Schedule, which contains three lists:

(a) Union List (List I)

• Contains 97 subjects (originally 97, now changes based on amendments).
• The Union Parliament has exclusive power to legislate on these subjects.
• Examples: Defence, Foreign Affairs, Banking, Railways, Atomic Energy.

(b) State List (List II)

• Contains 66 subjects (originally 66).
• State Legislatures have exclusive power over these subjects.
• Examples: Police, Public Health, Agriculture, Local Government.

(c) Concurrent List (List III)

• Contains 52 subjects (originally 47).
• Both Union and State Governments can legislate.
• In case of conflict, Union law prevails.
• Examples: Criminal Law, Marriage and Divorce, Education, Economic and Social Planning.

Residuary Powers (Article 248)

Any subject not mentioned in the three lists is considered a residuary subject, and the power to legislate on such matters rests exclusively with the Union. This is a key feature that strengthens the Centre.

Parliament’s Power to Override State Laws

The Parliament may legislate on State subjects under special circumstances:

1. When the Rajya Sabha passes a resolution (Article 249).
2. When National Emergency is in operation (Article 250).
3. To implement International Treaties (Article 253).
4. When two or more states consent to Parliament legislating for them (Article 252).

Administrative Relations (Articles 256–263)

Administrative relations deal with the execution of laws and coordination between the Union and State Governments.

Obligations of States and the Union

• Under Article 256, States are required to ensure that their administration is carried out in accordance with Central laws.
• The Union may issue directions to States for this purpose.

Distribution of Executive Power

• The Union’s executive power extends to subjects in the Union List, and the States’ to their respective State List subjects.

Control in Certain Situations

• Under Article 365, if a State fails to comply with Central directives, it can lead to the imposition of President’s Rule under Article 356.

Establishment of Interstate Council (Article 263)

• Created to resolve disputes and promote cooperation between States.
• The Inter-State Council was constituted in 1990 following the recommendation of the Sarkaria Commission.

Financial Relations (Articles 268–293)

Financial relations determine how revenue is shared between the Union and the States.

Sources of Revenue

• The Union collects majority of high-yield taxes, such as income tax, excise duties, customs duties.
• States collect taxes such as land revenue, stamp duty, and taxes on goods and passengers (now replaced largely by GST).

Recommendations of the Finance Commission (Article 280)

• The Finance Commission, appointed every five years, recommends:
  • Distribution of tax revenue between Union and States.
  • Grants-in-aid to States.

Goods and Services Tax (GST)

• Introduced through the 101st Constitutional Amendment (2016).
• Created the GST Council (Article 279A) to coordinate indirect tax policy between the Union and States.

Grants and Loans

• Article 275: Grants-in-aid to States in need.
• Articles 292–293: Borrowing powers of the Union and States.

Inter-Governmental Relations and Co-operative Federalism

The relationship between Union and States has evolved toward co-operative federalism, where both levels work collaboratively.

Mechanisms Encouraging Cooperation

• NITI Aayog (replacing Planning Commission in 2015).
• Zonal Councils under the States Reorganisation Act, 1956.
• Inter-State Council under Article 263.

However, tensions often arise, especially concerning:

• Allocation of funds,
• Federal dominance in emergency provisions,
• Role of Governors in states.

Mnemonic to Remember the Answer

“LAFI – Legislative, Administrative, Financial, Intergovernmental”

• L – Legislative Relations (Union List, State List, Concurrent List)
• A – Administrative Relations (Union control, Directions, President’s Rule)
• F – Financial Relations (Finance Commission, GST, Grants-in-aid)
• I – Intergovernmental Cooperation (NITI Aayog, Inter-State Council, Zonal Councils)

This helps recall the four major areas of Union-State Relations.

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Explore the Framework of Federal Governance in India with a clear understanding of how powers are divided and shared between the Union and State Governments. Learn about legislative, administrative, and financial relations, including the role of the Finance Commission, GST Council, and Inter-State Council in promoting cooperative federalism. This article on Lawgnan.in is ideal for law students, UPSC aspirants, and judiciary exam candidates, offering simplified notes, case insights, and constitutional references. Strengthen your knowledge of federal balance and constitutional relations by visiting Lawgnan.in today for detailed legal learning.