Critically examine centre state financial relationship advisor

The Relation between Centre and State in India

critically examine centre state financial relationship advisor

'It is high time that the distribution of Central Assistance Under Article of Indian of the Finance Commission) needs to be re-examined in all its implications. of India in the post-Nehru period has conduced to better Centre- State relations, but (it has) Critically review the constitutional provisions relating to centre-state. The financial relations between the Union and the States can be studied under by the Centre and the States: Taxes on services are levied by the Centre, but. Jul 28, Trending now; Entrance Exam · Career Change · CBSE Solved Papers · Job Counselling · Private The centre-state relations are divided into three parts, which are to investigate and discuss subjects in which some or all of the States, The Constitution deals with the centre-state financial relations in.

At present, there are 52 subjects in the concurrent list.

critically examine centre state financial relationship advisor

The list includes subjects such as education, forests, protection of wild animals and birds, electricity, labour welfare, criminal law and procedure, civil procedure, population control and family planning, drugs etc.

Article empowers the centre to give directions to the states in certain cases in regards to the exercise of their executive powers. Article empowers the parliament to legislate with respect to a matter in the State List in the national interest.

Financial Relations between Centre and State (Art. 268 to 293)

Under Articlethe parliament becomes empowered to make laws on the matters related to state list when national emergency under Article is in operation.

Administrative Relations Article to deals with the administrative relations between the centre and the states.

  • Union-State Relations / Centre-State Relations
  • Central State Relation - Legislative, Administrative and Financial
  • The Relation between Centre and State in India

Article states that "the executive power of every State shall be so exercised as to ensure compliance with the laws made by the parliament and any existing laws which apply in that State, and the executive power of the Union shall extend to the giving of such directions to a State as may appear to the Government of India to be necessary for that purpose".

Centre-State Relations during Emergency i During a national emergency under Articlethe state government become subordinate to the central government. All the executive functions of the state come under the control of the union government.

Union-State Relations / Centre-State Relations

Allocation of taxing powers The Constitution has provided the union government and the state governments with the independent sources of revenue. It allocates the powers to centre and the states in the following way: However, in case of tax revenue distribution, article states that duties are levied by the Union but are collected and appropriated by the States; Service tax levied by Union and collected and appropriated by the Union and the States Article A ; Taxes levied and collected by the Union but assigned to the States Article ; Taxes levied and collected by the Union but distributed between the Union and the States Article Certain taxes are levied as well as collected by the Union, but their proceeds are divided between the Union and the States in a certain proportion in order to effect an equitable distribution of the financial resources.

This category includes all the taxes and duties referred to in the Union List, except the three categories mentioned above, any surcharge and any cess levied for specific purposes.

critically examine centre state financial relationship advisor

The manner of distribution of net proceeds of these taxes is prescribed by the President, on the recommendation of the Finance Commission. Surcharge on certain taxes Art. The Parliament is, authorized to levy surcharge on the taxes mentioned in the above two categories Art.

Financial Relations between Centre and State (Art. to ) – Civilsdaily

Taxes levied and collected and retained by the states: These are the taxes enumerated in the State List 20 in number and belong to the States exclusively. The Parliament may make grants-in-aid from the Consolidated Fund of India to such States as are in need of assistance Art.

critically examine centre state financial relationship advisor

These are called statutory grants and made on the recommendation of the Finance Commission. Apart from this, Art. The Centre makes such grants on the recommendation of the Planning Commission an extra-constitutional body.

The Union Government may provide loan to any State or give guarantees with respect to loans raised by any State. Previous sanction of the President Art No Bill or amendment can be introduced or moved in either House of Parliament without the previous sanction of the President, if: According to ArticleFreedom of Trade, Commerce and Intercourse throughout the territory of India is guaranteed, but Parliament has the power to impose restrictions in public interest.

Centre-state financial relations (ECO)