Indian Constitution - UPSC Political Science Optional

THE FEDERAL SCHEME LESSON 3 BY SWETA CHOWDHURY

ADMINISTRATIVE RELATIONS Adoption of the scheme provided for in the Government of India Act 1935 Art. 256: A State's exercise of executive power must be compatible with the laws made by the Parliament- the Parliament may issue directions to the State for working in compliance with Un on laws Ambedkar- legislations pertaining to the abolition of untouchability ,child marriage and so on must not be mere paper legislations- the Centre must have the power to execute the law it enacts

ADMINISTRATIVE RELATIONS Art. 257: No State can "impede or prejudice" the power of the Union in terms of the execution of laws in the State- directions from the Union to the States to remove obstacles in the smooth functioning of an Union agency in the State- establishment of effective communication systems of national or military importance, protection of railways and so on Art. 258: The Union Government may impose executive duties within the jurisdiction of the Union, on State Officers In case of an impasse with regard to the funds required by the State to carry out the directions, the Chief Justice shall appoint an arbitrator

ADMINISTRATIVE RELATIONS Art. 261: Public acts, records and judicial proceedings with regard to the Union and States throughout India shall have "full faith and credit" Art. 262: Inter-State river disputes shall be dealt with exclusively by the Parliament- Parliament may ask for non-interference by the upreme Court or other courts . Art. 263: The President is empowered to appoint an Inter-State Council when necessary- enquire, investigate, discuss, recommend- better coordination

FINANCIAL RELATIONS . Basic principles guiding the distribution of resources between the federation and the units- "efficiency, adequacy and suitability" Defect in the Government of India Act 1935- meager revenue resources to the Provinces- Indian Constitution makers sought to rectify this through an elaborate division of revenue resources- a) allocation of revenues between the Union and the States b)the distribution of grants-in-aid Nuanced allocation was left to the Finance Commission-Art. 28o,Art. 281

FINANCIAL RELATIONS SOURCES OF REVENUE: UNION- currency, coinage, foreign loan, corporation tax, duties of customs,export duties, railways, Reserve Bank of India, taxes on income other than agricultural STATE-land revenue, taxes on vehicles, tolls, taxes on the consumption or sale of electricity, taxes on agricultural income, capitation taxes o Art. 268: Duties levied by the Union but collected and appropriated by the States Art. 269: Taxes levied and collected by the Union but assigned to the States Art. 27o, Art. 272: Taxes levied and collected by the Union but may be distributed between the Union and the States Art. 274: Bills affecting taxation in which the States are interested Art. 276: Taxes on professions, trades Art. 285, Art. 289- partial adoption of the "Principle of Immunity of Instrumentalities"- exemptions of Union and State property imposed on both by each other (Union and State Taxation) subject to Parliamentary power to impose taxes and voluntary agreement by the Parliament o

FINANCIAL RELATIONS . GRANTS-IN-AID-Art. 275: Financial assistance by the federal Union to the States for the welfare of the States and the upliftment of the Scheduled Tribes, from the Consolidated Fund of India on an yearly basis(not applicable at all times)- decided upon by the Finance Commission Based on planning priorities and needs of individual States- maximum incentive" for the development of State resources- States must ensure maximum economy and efficiency" with regard to the utilization of funds and "contribute creatively to the planning process"

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