The main characteristic of a federal constitution is the distribution of powers between the center and

the states. The Indian constitution provides for a new kind of federalism to meet Indias peculiar needs.
In the matter of distribution of powers, the framers followed the pattern of the Government of India
Act, 1935. Thus, predominance has been given to the union parliament over the state legislatures or
assemblies regarding the distribution of legislative powers.

The legislative powers are subject to the scheme of distribution of powers between the union and state
legislatures (as provided in three lists under the constitution), fundamental rights (i.e. legislative powers
cannot contravene the fundamental rights) and other provisions of the constitution (articles 245-254).

There are three lists which provide for distribution of legislative powers under 7th Schedule to the
constitution:-

(1) Union List (List 1) It contains 97 items and comprises of the subjects which are
of national importance and admit of uniform laws for the whole of the country. Only the union
parliament can legislate with respect to these matters. For example, Defence, foreign affairs, banking,
currency, union taxes, etc.

(2) State List (List 2) It contains 66 items and comprises of subjects

of local or state interest and thus lie within the legislative competence of the state legislatures, viz.
public order and police, health, agriculture, forests, etc.

(3) Concurrent List (list 3) It contains 47 items, with respect to which; both union
parliament and the state legislature have concurrent power of legislation. The concurrent list (not found
in any federal constitution) was to serve as a device to avoid excessive rigidity to a two-fold distribution.
It is a twilight zone, as for not so important matters, the states can take initiative, while for the
important matters, the parliament can do so. Besides, the states can make supplementary laws in order
to amplify the laws made by union parliament. The subjects include general laws and social welfare
civil and criminal procedure, marriage, contract, planning education, etc.

Administrative Centre-State Relations:

Articles 256 to 263 The Indian Constitution deal with the administrative aspect of centre-state relations
in India. Regarding Administration, State governments are like sub-ordinates to the Centre. Central
government gives directions to the State governments in the course of administrative action.

Even some matters like railways, central excise, income tax, post and telegraph and so on are directly
administered by the central government. Hence, in administrative matters also Centre has the final say.

Financial Centre-State Relations:

Articles 268 to 293 in the Indian constitution deal with the financial aspect of centre-state relations in
India. It mainly deals with the imposition and collection of taxes. These are categorised as follows:
Taxes levied by the centre but collected and used by the states: The stamp duties, Excise duties,
medicinal and toilet preparations come under this.

Taxes levied and collected by the centre but given to the states: The property tax, taxes on goods
carried by railways, Sea, airways and so on come under this.

Taxes levied and collected by the centre but distributed between centre and states: Income tax other
than corporate tax and such other residual taxes come under this.

In addition to this, Centre also gives many grants and loans to the states from time to time.

Legislative Powers: Predominance of union law and limitations of

state legislatures
(1) In case of an overlapping between the three lists, regarding a matter, the predominance is given to
the union (article 246). Thus, entries in state list have to be interpreted according to those in the union
and concurrent lists.

(2) In the concurrent sphere, in case of a repugnancy or inconsistency between union and states law
relating to the same subject the union law prevails (article 254).

(3) Extensive nature of Union List Some subjects normally intended to be in the
jurisdiction of states are in the union list example industries, universities, election and audit, inter-state
trade and rivers, etc.

(4) Residuary powers (article 248) Power to legislate with respect to any matter not
enumerated in any of the three lists (example imposition of taxes) is given to the union.

(5) Expansion of powers of union legislature under certain circumstances in the following situations,
parliament can legislate with respect to state list subjects:

(a) when rajyasabha declares by a resolution of 2/3rd majority (members present and voting) that it is
necessary in national interest; it shall be lawful for parliament to make laws for the whole or any part of
the territory of India with respect to that matter while the resolution remains in force. (Article 249)
(b) Under a proclamation of emergency; it shall be lawful for parliament to make laws
for the whole or any part of the territory of India with respect to matter in the state list (article 250).
Thus, during emergency, the parliament can legislate on subjects in all the three lists and the federal
constitution gets converted into unitary one.

Nothing in articles 249 and 250 shall restrict the power of state legislature to make any law which under
this constitution it has power to make, but if any provision of a law made by the legislature of a state is
repugnant to any provision of a law made by parliament which parliament has under either of the said
articles power to make, the law made by parliament, whether passed before or after the law made by
the legislature of the state, shall prevail, and the law made by the legislature of the state shall to the
extent of the repugnancy, but so long only as the law made by parliament continues to have effect, be
inoperative (article. 251).

(c) by agreement between the states i.e. with the consent of state legislatures; if it
appears to the legislatures of two or more states to be desirable that any of the matters with respect to
which parliament has no power to make laws for the states (except as provided in articles. 249 and 250)
should be regulated in such states by parliament by law, and if resolutions to that effect are passed by
all the house of the legislatures of those states, it shall be lawful for parliament to pass an act for
regulating that matter accordingly, and any act so passed shall apply to such states and to any other
state by which it is adopted afterwards by resolution passed in that behalf by the states house. the
parliament (not state legislature) also reserves the right to amend or repeal any such act (article. 252).

(d) To implement treaties:- Notwithstanding anything in the foregoing provisions of this

chapter, parliament has power to make any law for the whole or any part of the territory of India for
implementing any treaty, agreement or convention with any other country or countries or any decision
made at any international conference, association or other body (article 253). Treaties are not required
to be ratified by parliament. They are, however, not self-operative. Parliamentary legislation will be
necessary for implementing them. But laws enacted for the enforcement of treaties will be subject to
the constitutional limits i.e. such a law cannot infringe fundamental rights.

(e) Failure of constitutional machinery in a state (article 356). The president can
authorize the parliament to exercise the powers of the state legislature during the proclamation of
emergency due to breakdown of constitutional machinery in a state.

(6) Distribution of legislative powers does not apply to union territories, in which parliament can
legislate with respect to any subject including those in the state list. Parliament has power to make
laws with respect to any matter for any part of the territory of India not included (in a state)
notwithstanding that such matter is a matter enumerated in the state list [article. 246(4)].

(7) Notwithstanding anything in this chapter, parliament may by law provide for the establishment of
any additional.