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Context:

The sudden rise of violence in Manipur revived the discussion about Centre-State relations and the use of emergency powers by the Centre.

Details

• The Federal Structure of Governance in India is unique because it is “quasi-federal,” implying it has features of both federalism (a division of powers between the Centre and States) and unitarism (strong central authority).
• The distribution of powers between the Centre and States is outlined in the Seventh Schedule of the Indian Constitution, which includes:
  • • Union List: Subjects like defence, foreign affairs, and atomic energy, where the Centre has exclusive authority.
    • State List: Subjects like police, public health, and agriculture, which are the domain of State governments.
    • Concurrent List: Subjects like education and criminal law, where both the Centre and States can legislate.
• Despite this division, specific provisions allow the Centre to exercise influential control over State governments, mainly during emergencies.

Emergency Provisions under the Indian Constitution

• The Constitution provides three types of emergencies to manage extraordinary circumstances where standard governance mechanisms may be inadequate.
• These provisions are outlined in Part XVIII (Articles 352 to 360) and deal with different scenarios that endanger national security, constitutional governance, or financial stability.
• These provisions are extraordinary because they allow the Centre to take over the governance of a State, disrupting the federal balance.

Key Points	National Emergency (Article 352)	State Emergency/President’s Rule (Article 356)	Financial Emergency (Article 360)
Definition	Declared during a serious threat to the nation’s security, sovereignty, or peace due to war, external aggression, or armed rebellion.	Imposed when there is a failure of constitutional machinery in a State.	It is declared when India's financial stability, credit, or any part of its territory is threatened.
Conditions for Imposition	1. War  2. External aggression  3. Armed rebellion (previously referred to as “internal disturbance” but amended by the 44th Amendment).	1. Breakdown of constitutional machinery in a State.  2. State government fails to function as per the Constitution.	1. Threat to financial stability.  2. Risk to India's creditworthiness.  3. Severe economic crisis.
Declaration, Approval & Duration	1. Declared by the President upon the written recommendation of the Cabinet.  2. Must be approved by both Houses of Parliament within one month.  3. Initially lasts for six months, but can be extended indefinitely with Parliament’s approval every six months.	1. Governor of the State recommends to the President.  2. Imposed by the President after receiving a report from the Governor. 3. Must be approved by both Houses of Parliament within two months. 4. Initially valid for six months, extendable to a maximum of 3 years with Parliament’s approval.	1. Declared by the President and must be approved by both Houses of Parliament within two months.  2. Can continue indefinitely with periodic approvals.
Imposed	1. Declared during the Sino-Indian War 1962. 2. Declared during the Indo-Pakistani War in 1971. 3. Declared due to political and civil rights issues 1975-77.	State emergency, also known as President’s Rule applied over 100 times since independence.	India has never declared a financial emergency.
Effect on Fundamental Rights	1. Fundamental Rights under Article 19 (freedom of speech, assembly, etc.) are automatically suspended.  2. Rights under Article 20 (Protects citizens from self-incrimination)  and Article 21 (right to life and liberty) remain in force.	There is no automatic suspension of Fundamental Rights, but certain restrictions may be imposed.	There is no direct effect on Fundamental Rights, but financial actions affecting salaries, property, and distribution of resources may impact individual rights indirectly.
Effect on Legislative Powers	1. The Centre assumes legislative powers over the State List (subjects typically under State jurisdiction).  2. Parliament can make laws on all subjects, including State List items.	The powers of the State Legislature are suspended, and the Parliament assumes legislative authority in that State.	The Centre gains control over financial matters, including the salaries of government officials and resource allocations.
Effect on Executive Powers	The President can direct state governments to execute union laws and policies, potentially overriding state authorities.	The Governor or any Central authority assumes executive powers of the State government.	The Centre controls all financial matters, overriding State financial governance.
Judicial Review	Subject to judicial review. The Supreme Court and High Courts can question the legality of the proclamation.	Subject to judicial review. The S.R. Bommai case (1994) provided significant checks against misuse.	Subject to judicial review, but a Financial Emergency has never been declared yet.

Challenges in Center-State Relations

• The Indian Constitution establishes a federal structure with a strong central government can sometimes lead to a concentration of power at the Centre, reducing states' autonomy.
• Central control over resources, such as financial allocations and regulatory powers, can limit state autonomy.
• Administrative conflicts arise from differences in policy priorities between the Centre and states, leading to inefficiencies and bureaucratic hurdles.
• Legal and constitutional issues include interstate disputes over boundaries, water resources, and other issues between states that require central intervention to resolve.
• Economic disparities arise from states' varying levels of economic development, leading to inequalities in infrastructure and public services.
• Emergency provisions, such as imposing President's Rule (Article 356) in states, can undermine state autonomy and create resentment and instability.

Way Forward on Center-State Relation

• Strengthening federal institutions such as the Inter-State Council can facilitate dialogue and resolve disputes between the Centre and states.
• Financial Federalism reforms should improve revenue-sharing mechanisms and encourage state-specific revenue-generating strategies.
• Enhancing political stability can be achieved through political dialogue, addressing regional aspirations, and revising emergency provisions.
  • • Reassessing Article 356 and decentralising emergency powers can protect state autonomy and prevent political instability.
• Strengthening local governance institutions and devolving powers to municipalities and panchayats can improve grassroots governance and reduce the burden on state governments.

Key committees and commissions on Centre-State relations

Rajamannar Committee (1969)

• The DMK government formed it in Tamil Nadu.
• Key Recommendation:
  • • To establish an Inter-State Council.
    • The decisions affecting states should be consulted with the Inter-State Council.
    • Restrict Article 356 to apply only in case of a complete breakdown of law and order.
    • Residuary powers under the 7th schedule should be transferred to states.

Anandpur Sahib Resolution (1973)

• It was adopted by the Akali Dal in Punjab.
• Key Recommendations:
  • • Restrict the Centre's jurisdiction to defence, foreign affairs, communications, and currency and transfer all other powers to states.
    • Ensure equal authority for all states at the Centre.

West Bengal Memorandum (1977)

• The Communist government in West Bengal presented it.
• Key Recommendations:
  • • Replace "Union" with "Federation" in the Constitution.
    • Restrict the Centre's defence, foreign affairs, currency, communications, and economic coordination powers.
    • Repeal Articles 356, 357, and 360 of the Constitution.

Sarkaria Commission (1983-1988)

• The Government of India appointed it under Justice R.S. Sarkaria.
• Key Recommendations:
  • • Strengthen the Inter-State Council.
    • Provide guidelines for Article 356 use.
    • Grant greater financial autonomy to states.
    • Decentralize powers to local governments.

Punchhi Commission (2007-2010)

• The Government of India appointed it under Justice Madan Mohan Punchhi.
• Key Recommendations:
  • • It offers clear guidelines for the use of Article 356.
    • Strengthen local self-government.
    • Improve Centre-State financial relations mechanisms.

Conclusion

Centre-state relations in India are designed to balance power and cooperation between the Centre and the states. The Constitution provides a framework for this relationship, further refined by various commissions and judicial interpretations to address the evolving needs of governance.

Must Read Articles:

EMERGENCY IN INDIA (1975-1977)

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CONFLICT BETWEEN STATES AND GOVERNORS

PUNCHHI PANEL

Source:

The Hindu

LOKRAJ

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PRACTICE QUESTION Q.Critically analyse the concept of cooperative federalism in India. How have recent developments in Indian politics and governance affected the principles of cooperative federalism? (150 Words)