India has two levels of government, the Union and the states. Both make laws, run offices and collect taxes. The Constitution divides this work in three ways: legislative (Articles 245–255), administrative (Articles 256–263) and financial (Articles 268–293). The Seventh Schedule lists who makes laws on what.
A Union with a strong Centre
Federal in structure, but the Union has the upper hand.
Article 1 calls India a "Union of States", not a federation. B. R. Ambedkar explained the word: the Union is not the result of an agreement among states, and no state can leave it. The Constitution is federal in normal times, but it can work almost like a unitary system in an Emergency.
| Channel | Where in the Constitution |
|---|---|
| Legislative | Part XI, Articles 245–255, with the Seventh Schedule |
| Administrative | Part XI, Articles 256–263 |
| Financial | Part XII, Articles 268–293 |
The Seventh Schedule: three lists
Who makes laws on what, and who gets the leftovers.
Article 246 divides law-making subjects into three lists in the Seventh Schedule. The idea of three lists came from the Government of India Act, 1935; the Concurrent List idea is usually traced to Australia.
Parliament only. Defence, foreign affairs, citizenship, railways, banking, currency, atomic energy, census.
State legislature. Police, public order, public health, agriculture, land, local government, liquor.
Both. Criminal law, marriage and divorce, education, forests, electricity, trade unions.
Subject counts change with amendments. In 1950 the lists had 97, 66 and 47 subjects. Books today give about 98–100, 59–61 and 52.
The 42nd Amendment (1976) moved five subjects from the State List to the Concurrent List: education, forests, weights and measures, protection of wild animals and birds, and administration of justice (courts other than the Supreme Court and High Courts).
A subject in no list, such as something the framers could not foresee, belongs to Parliament. This includes the power to levy residuary taxes. India follows Canada here; in the USA and Australia leftover powers stay with the states. If a dispute arises over whether a matter is residuary, the courts finally decide.
- Police and public order
- State List
- Citizenship
- Union List
- Education
- Concurrent List (moved from State List in 1976)
- Agriculture
- State List
- Banking and currency
- Union List
- Local government (panchayats, municipalities)
- State List
- Marriage and divorce
- Concurrent List
- Forests
- Concurrent List (moved in 1976)
When Parliament can enter the State List
Five doors, and the rule when two laws clash.
The State List belongs to the states. But in five situations Parliament can make laws on it. Only one of these doors, Article 252, is opened by the states themselves.
| Article | When | Key condition |
|---|---|---|
| 249 | National interest | Rajya Sabha resolution by two-thirds present and voting; lasts 1 year, renewable |
| 250 | National Emergency | Law lapses 6 months after the Emergency ends |
| 252 | Two or more states ask | Applies to those states and any that adopt it later; only Parliament can amend it |
| 253 | To carry out a treaty | No state consent needed |
| 356–357 | President's Rule | Parliament (or the President) makes laws for that state |
N-E-R-T-P — National interest 249, Emergency 250, Request of states 252, Treaty 253, President's Rule 356.
On a Concurrent List subject, the central law prevails and the state law is void to the extent of the clash. This is the rule of repugnancy. Exception: if the state law was reserved for the President and got his assent, it prevails in that state. Even then, Parliament can override it later with a new law.
Administrative relations and inter-state bodies
Union directions, All-India Services, councils, water disputes and the commissions.
| Article | What it says |
|---|---|
| 256 | States must use their power so that Union laws are obeyed; the Union may give directions. |
| 257 | States must not obstruct the Union; directions on communications and railways. |
| 258 / 258A | Union and states can hand over functions to each other, with consent. |
| 261 | Full faith and credit to public acts, records and court orders across India. |
| 262 | Inter-state river water disputes; Parliament may bar courts from hearing them. |
| 263 | President may set up an Inter-State Council. |
| 312 | New All-India Service if the Rajya Sabha agrees by two-thirds. |
| 355 / 365 | Union must protect states; ignoring Union directions can lead to President's Rule. |
Parliament passed the Inter-State River Water Disputes Act, 1956. It lets the Centre set up a tribunal, and bars the Supreme Court and other courts from hearing the dispute itself. For Punjab, the Ravi and Beas Water Tribunal was set up in 1986, with Punjab, Haryana and Rajasthan as parties.
All-India Services: the IAS and IPS go back to before 1950. The Indian Forest Service became the third All-India Service in 1966. Officers are recruited by the Union, serve in the states, and only the Union can dismiss them.
- 1966Administrative Reforms Commission
Union body; asked for an Inter-State Council.
- 1969Rajamannar Committee
Set up by Tamil Nadu; asked for more state autonomy.
- 1973Anandpur Sahib Resolution
Adopted in Punjab; it too sought more powers for the states.
- 1983Sarkaria Commission
Set up by the Centre; report in 1988 with 247 recommendations.
- 2000Venkatachaliah Commission (NCRWC)
Reviewed the working of the whole Constitution; report 2002.
- 2007Punchhi Commission
Second Union commission on Centre-state ties; report 2010.
- Former Chief Justice of the Madras High Court
- Committee set up by the Tamil Nadu government
- Retired Supreme Court judge
- Led to the Inter-State Council (1990)
- Former Chief Justice of India
- Suggested a fixed tenure for Governors
Financial relations, the Finance Commission and GST
The Union collects more; the states spend more. Here is how the gap is filled.
The Union has the biggest taxes, like income tax and customs. The states run most services, like police, schools and hospitals. So the Union shares its taxes and gives grants. The Finance Commission decides the formula.
| Article | What it says |
|---|---|
| 268 | Levied by the Union, collected and kept by states (certain stamp duties). |
| 269 / 269A | Levied and collected by the Union, given to states; 269A: inter-state GST (IGST) shared. |
| 270 | Most central taxes go into a pool shared with the states. |
| 271 | Surcharges are kept by the Union alone. |
| 275 | Statutory grants to states in need, charged on the Consolidated Fund of India. |
| 280 | Finance Commission, every 5 years. |
| 282 | Discretionary grants for any public purpose. |
| 293 | States borrow within India; Centre's consent needed if a central loan is unpaid. |
Set up by the President every five years (or earlier). It has a chairman and four members. It recommends how central taxes are split between the Union and the states, and among the states, the principles for grants-in-aid, and help for panchayats and municipalities. Its advice is not binding, but is usually accepted. The first Finance Commission (1951) was chaired by K. C. Neogy.
Everything on one look
Lists, doors into the State List, councils and money.
- Lists in 1950: 97 · 66 · 47
- Concurrent List today: 52 subjects
- 42nd (1976): 5 subjects to Concurrent
- Residuary: Art 248, Parliament
- Repugnancy: Art 254, Union law wins
- Finance Commission: Art 280, every 5 years
- 249: Rajya Sabha, national interest
- 250: National Emergency
- 252: two or more states ask
- 253: international treaty
- 356–357: President's Rule
- 263: Inter-State Council (1990)
- Residuary powers are with Parliament (Canada model), not with the states as in the USA.
- Concurrent List is from Australia; residuary with Centre is from Canada.
- The 42nd Amendment moved five subjects, including education and forests, to the Concurrent List.
- An Article 249 resolution is passed by the Rajya Sabha alone, by two-thirds present and voting.
- Article 252 is the only door the states open; only Parliament can later change that law.
- Article 253 needs no state consent.
- Inter-State Council: PM chairs; Zonal Councils: Home Minister chairs.
- GST Council is chaired by the Finance Minister, not the PM.
- Finance Commission advice is not binding.
- Article 1: India is a Union of States
- Seventh Schedule: three lists
- Article 246: division of subjects
- Article 248: residuary powers to Parliament
- Article 249: Rajya Sabha resolution
- Article 250: National Emergency
- Article 252: states request
- Article 253: treaties
- Article 254: repugnancy
- Article 262: river water disputes
- Article 263: Inter-State Council
- Article 279A: GST Council
- Article 280: Finance Commission
- Article 312: All-India Services
- Sarkaria Commission: 1983
- Punchhi Commission: 2007
Parliament wants to pass a law on agriculture, a State List subject, for the whole country. There is no Emergency and no state has asked. What route does the Constitution allow, and how long does it last?
Show answer
Article 249. The Rajya Sabha must pass a resolution, supported by two-thirds of members present and voting, saying it is needed in the national interest. The resolution lasts one year and can be renewed. The law stops working six months after the resolution ends.