Centre-State Relations

Indian Polity & Governance
Constitution VerifiedUPSC Verified
Version 1Updated 5 Mar 2026

Article 245: Subject to the provisions of this Constitution, Parliament may make laws for the whole or any part of the territory of India, and the Legislature of a State may make laws for the whole or any part of the State. Article 246: Parliament has exclusive power to make laws with respect to any of the matters enumerated in List I in the Seventh Schedule (Union List). The Legislature of any St…

Quick Summary

Centre-State Relations form the constitutional backbone of Indian federalism, governing how power, resources, and responsibilities are distributed between the Union Government and State Governments. The relationship is structured through three key dimensions: Legislative Relations (Articles 245-255) distribute law-making powers through the Seventh Schedule's three lists - Union List (97 subjects like defence, foreign affairs), State List (66 subjects like police, agriculture), and Concurrent List (47 subjects like education, forests) where both can legislate but Union law prevails in conflict.

Administrative Relations (Articles 256-263) establish that states must comply with Union laws while providing coordination mechanisms through institutions like Inter-State Council and the Governor as constitutional link.

Financial Relations (Articles 268-293) create a system where Centre controls major revenue sources but shares with states through Finance Commission recommendations and grants-in-aid. Emergency Provisions (Articles 352-360) can temporarily alter federal balance through National Emergency, President's Rule, or Financial Emergency.

Key institutions include Finance Commission (tax distribution), GST Council (indirect tax coordination), Inter-State Council (policy coordination), and Supreme Court (dispute resolution). The system balances unity and diversity through 'cooperative federalism' where Centre and States work as partners while maintaining constitutional autonomy.

Recent developments include GST implementation, COVID-19 coordination challenges, and evolving political dynamics with regional parties. Understanding Centre-State relations is crucial for UPSC as it integrates constitutional law, current affairs, and governance issues across both Prelims and Mains examinations.

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  • Legislative Relations: Articles 245-255, Seventh Schedule (Union-97, State-66, Concurrent-47 subjects)
  • Administrative Relations: Articles 256-263, Governor as Centre-State link, Inter-State Council
  • Financial Relations: Articles 268-293, Finance Commission (42% devolution), GST Council
  • Emergency Provisions: Articles 352-360 (National Emergency, President's Rule, Financial Emergency)
  • Key Cases: S.R. Bommai (1994) - Article 356 limits, Kesavananda Bharati (1973) - federalism basic structure
  • Current: GST disputes, COVID coordination, cooperative federalism model
  • Institutions: Finance Commission, Inter-State Council, GST Council, NITI Aayog

Vyyuha Quick Recall - 'LEAF' Framework for Centre-State Relations: L-Legislative (Articles 245-255, Three Lists: Union-97, State-66, Concurrent-47), E-Executive (Articles 256-263, Governor Link, Inter-State Council), A-Administrative (Compliance, Coordination, Cooperation), F-Financial (Articles 268-293, Finance Commission 41%, GST Council 1/3-2/3).

Remember 'SAGE' for Emergency: S-State Emergency (356), A-Armed Rebellion (352), G-Government Breakdown (356), E-Economic Crisis (360). Use 'BOMB' for key cases: B-Bommai (356 limits), O-Original jurisdiction (131), M-Mandatory compliance (256), B-Basic structure federalism (Kesavananda).

Current affairs memory: 'GST-COVID-CLIMATE' - three major contemporary challenges testing federal coordination.

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