Functions and Responsibilities of the Union and the States

Introduction

The Constitution of India establishes a federal system with a strong Union by clearly distributing legislative, administrative and financial responsibilities between the Union and the States. This division ensures efficient governance, national unity, regional autonomy and cooperative federalism.

The distribution of powers is primarily provided under Articles 245–263 (Part XI) and the Seventh Schedule of the Constitution.

Constitutional Provisions

• Part XI (Articles 245–263): Legislative and Administrative Relations.
• Part XII (Articles 264–300A): Financial Relations.
• Seventh Schedule: Union List, State List and Concurrent List.
• Article 246: Distribution of legislative powers.
• Article 248: Residuary powers with the Union.
• Article 263: Inter-State Council.

Evolution of the Seventh Schedule

The Seventh Schedule is the constitutional mechanism through which legislative powers are distributed between the Union and the States. It reflects India's federal structure by dividing subjects into the Union List, State List and Concurrent List. The present framework has evolved through constitutional amendments, judicial interpretation and recommendations of various commissions to meet changing governance needs.

Historical Evolution

Government of India Act, 1935

The origin of the Seventh Schedule lies in the Government of India Act, 1935, which introduced a three-fold distribution of legislative subjects:

• Federal List
• Provincial List
• Concurrent List

However, residuary powers were vested in the Governor-General, unlike the present Constitution.

Adoption under the Constitution (1950)

The Constitution adopted the basic scheme of the Government of India Act, 1935, with important modifications.

• Article 246 read with the Seventh Schedule distributed legislative powers between Parliament and State Legislatures.
• Residuary powers were assigned to Parliament under Article 248, following the Canadian model rather than the American model.

Initially, the Seventh Schedule contained:

Constitutional Amendments

42nd Constitutional Amendment Act, 1976: The 42nd Amendment significantly strengthened the Union by transferring five subjects from the State List to the Concurrent List, enabling Parliament to legislate uniformly on matters of national importance.

The transferred subjects were:

• Education
• Forests
• Weights and Measures
• Protection of Wild Animals and Birds
• Administration of Justice; Constitution and Organisation of all Courts (except the Supreme Court and High Courts)

This reduced the State List from 66 to 61 subjects and increased the Concurrent List from 47 to 52 subjects.

101st Constitutional Amendment Act, 2016 (GST): The 101st Constitutional Amendment introduced a special legislative arrangement for the Goods and Services Tax (GST).

• Parliament and State Legislatures can both legislate on GST.
• Parliament has exclusive power to legislate on Inter-State GST (IGST).
• The amendment marked a shift towards cooperative fiscal federalism through the GST Council (Article 279A).

Evolution of Legislative Lists

(A) Union List: The Union List contains matters requiring uniform national legislation.

• Parliament has exclusive legislative power.
• Subjects increased from 97 to 100.

Examples: Defence, Foreign Affairs, Banking, Currency, Atomic Energy, Citizenship, Railways, Interstate Trade and Commerce.

(B) State List: The State List includes subjects of regional and local importance.

• State Legislatures ordinarily have exclusive legislative power.
• Subjects reduced from 66 to 61 after the 42nd Amendment.

Examples: Public Order, Police, Agriculture, Public Health, Local Government, Markets, Fisheries, Prisons.

(C) Concurrent List: The Concurrent List contains subjects where uniformity is desirable but regional flexibility is also necessary.

• Both Parliament and State Legislatures can legislate.
• Subjects increased from 47 to 52 after the 42nd Amendment.

Examples: Criminal Law, Marriage and Divorce, Labour Welfare, Electricity, Education, Forests, Economic and Social Planning.

Residuary Powers: Under Article 248, matters not enumerated in any of the three lists fall within the exclusive legislative competence of Parliament.

These include emerging areas such as:

• Cyber Laws
• Digital Currency
• Artificial Intelligence
• Space Commerce

This follows the Canadian model, unlike the United States, where residuary powers belong to the States.

Legislative Power over Union Territories: Parliament has the power to legislate on any subject, including matters in the State List, for Union Territories and other territories not forming part of any State.

Principle of Legislative Supremacy

The Constitution establishes a clear hierarchy among the three lists.

• Union List prevails over both the State List and the Concurrent List.
• Concurrent List prevails over the State List in case of inconsistency.
• State List operates independently only within its constitutional sphere.

Conflict under the Concurrent List (Article 254)

Where a Central law and a State law conflict on a Concurrent List subject:

• The Central law generally prevails.
• However, if the State law has received the President's assent, it prevails within that State.
• Parliament retains the power to override such a State law by enacting subsequent legislation.

Comparative Perspective

Recommendations of Commissions

Sarkaria Commission (1983)

• Recommended retaining the existing distribution of subjects under the Seventh Schedule.
• Found no compelling case for transferring subjects from the Concurrent List to the State List.
• Recommended greater consultation with States before Parliament legislates on Concurrent List subjects.

National Commission to Review the Working of the Constitution (Venkatachaliah Commission), 2002

• Observed that there is no formal institutional mechanism for mandatory consultation with States before Parliament legislates on Concurrent List matters.
• Recommended strengthening consultative federalism through structured Centre–State dialogue.

Federal System of Government

India follows a federal system with unitary features, combining the principle of division of powers with the need for a strong national government. The Constitution creates two levels of government—the Union and the States—each functioning within its constitutionally assigned sphere.

Features of the Indian Federal System

• Dual Polity: The Constitution establishes two levels of government—the Union and the States—each deriving its authority directly from the Constitution.
• Written Constitution: The Constitution clearly defines the powers, functions and responsibilities of each level of government, reducing jurisdictional conflicts.
• Distribution of Powers: Legislative powers are divided through the Union, State and Concurrent Lists under the Seventh Schedule.
• Supremacy of the Constitution: Both the Union and the States must function within constitutional limits, and any law inconsistent with the Constitution can be declared void.
• Independent Judiciary: The Supreme Court acts as the guardian of the Constitution and resolves disputes between the Union and the States.
• Bicameral Legislature at the Union: The Rajya Sabha represents the States in the Union Parliament, thereby strengthening the federal structure.
• Single Citizenship: Unlike many federations, India provides single citizenship, promoting national unity and equal rights across the country.
• Strong Centre: Residuary powers, emergency provisions, appointment of Governors and the power of Parliament to legislate in certain State subjects make the Indian federation Union-biased.

Nature of Indian Federalism

• Federal in normal times.
• Unitary during emergencies.
• Based on the principle of Cooperative, Competitive and Collaborative Federalism.

However, it is Tilted Towards the Centre?

• Larger Union List: The Union List contains 100 subjects, including defence, foreign affairs, banking, currency and atomic energy, giving Parliament exclusive control over matters of national importance.
• Residuary Powers with Parliament: Unlike the USA, Article 248 vests residuary legislative powers (subjects not mentioned in any list) in Parliament.
• Parliament Can Legislate on State Subjects: Under certain circumstances, Parliament can legislate on matters in the State List, such as:

o Article 249 – National interest (Rajya Sabha resolution)

o Article 250 – During a National Emergency

o Article 252 – On the request of two or more States

o Article 253 – To implement international treaties

o Article 356 – During President's Rule

• Emergency Provisions: During a National Emergency (Article 352), the federal system becomes largely unitary, and Parliament can legislate on State subjects.
• Governor as Union's Representative: The Governor is appointed by the President (Article 155) and acts as the constitutional link between the Union and the State.
• Single Constitution: Except for certain special provisions, India follows one Constitution for both the Union and the States, unlike many federations that have separate State Constitutions.
• Single Citizenship: India provides single citizenship, strengthening national unity rather than dual citizenship as in countries like the USA.
• Integrated Judiciary: India has a single integrated judicial system, headed by the Supreme Court, instead of separate federal and state court systems.
• Financial Dominance of the Union: The Union levies most high-revenue taxes, while States depend significantly on Finance Commission transfers, grants-in-aid and GST compensation mechanisms.
• All India Services: Under Article 312, services such as the IAS, IPS and IFoS are recruited by the Union but serve both the Union and the States, ensuring administrative uniformity.
• Integrated Election and Audit Machinery: The Election Commission of India and the Comptroller and Auditor General (CAG) function as common constitutional authorities for both the Union and the States.
• Power to Reorganise States: Under Article 3, Parliament can create new States or alter the boundaries, names or territories of existing States by law.

Important Supreme Court Judgments

• State of West Bengal v. Union of India (1963): Held that the Indian Constitution establishes a federal system with a strong Union.
• S.R. Bommai v. Union of India (1994): Declared federalism to be a part of the Basic Structure of the Constitution.
• Government of NCT of Delhi v. Union of India (2018): Emphasised constitutional morality and cooperative federalism in Centre–State relations.

Conclusion

The constitutional distribution of functions and responsibilities between the Union and the States enables India to balance national unity with regional autonomy. The effectiveness of Indian federalism ultimately depends upon cooperative federalism, mutual trust and constitutional respect between both levels of government.