Federalism and Decentralisation: Centre–State Relations and Local Government
What this domain tests
This domain combines centre–state relations with the 73rd and 74th Amendments. Expect questions on the three lists, constitutional bodies such as the Finance Commission, and the structure of panchayats and municipalities.
Core rules
- India is a federation with a strong centralising tendency. Federal features: two levels of government, division of powers, written constitution, bicameralism and independent judiciary. Unitary features: single citizenship, residuary powers with the Union, appointed Governors, emergency provisions, All India Services and unequal representation in the Rajya Sabha.
- Seventh Schedule: Union List, State List and Concurrent List. Residuary powers belong to the Union. On concurrent subjects, Article 254 makes a state law void to the extent of repugnancy with a central law, unless the state law has received the President's assent.
- Centre–state relations are legislative (Articles 249–253), administrative (256–257) and financial (268–281). The Finance Commission (Article 280) recommends sharing of taxes. The GST Council was created by the 101st Amendment (2016).
- The 73rd Amendment (1992) gave constitutional status to panchayats; the 74th to municipalities. They came into effect in 1993.
- Panchayats have three tiers: gram panchayat, taluk/panchayat samiti and zilla panchayat. The Eleventh Schedule lists 29 subjects; the Twelfth Schedule lists 18 municipal subjects. There is reservation for SCs, STs and one-third seats for women. State Election Commissions conduct local elections; State Finance Commissions review local finances.
- The Gram Sabha consists of all registered voters of a village.
Worked example
A state passes a public health law that conflicts with a central law on the same concurrent subject. Which prevails? Reasoning: public health is in the Concurrent List. Under Article 254(1), the state law is void to the extent of repugnancy. If the state law was reserved for and received the President's assent, it can prevail in that state under Article 254(2). Answer: the central law normally prevails; the exception is presidential assent.
Traps
Do not say residuary powers belong to the states. The 73rd Amendment is panchayats, the 74th municipalities. Do not confuse the Eleventh Schedule's 29 subjects with the Twelfth Schedule's 18. Gram Sabha is not the same as gram panchayat.