UPSC GS Paper II: Federalism, Centre-State Relations, Legislative, Administrative, Financial

Must?Know (20–25 detailed bullets)

• Article 246 – Specifies subject lists in Seventh Schedule; Union List (97 subjects), State List (66), Concurrent List (47) as per 101st Amendment; residuary powers under Article 248 vest with Parliament.
• Article 250 – Parliament can legislate on State List during Proclamation of Emergency under Article 352; used during 1975–77 Emergency.
• Article 252 – State legislatures may request Parliament to legislate on State List; requires resolution by two or more states, e.g., Kerala and West Bengal used it for insurance regulation.
• Article 253 – Parliament can legislate to implement international treaties, even on State List; used in enactment of Wildlife (Protection) Act, 1972 after CITES.
• Article 256 – State must comply with Union laws; failure allows President to issue directions under Article 365.
• Article 257 – Union can direct states on construction/maintenance of national highways, railways; invoked during border infrastructure development in Ladakh.
• Article 263 – President may establish Inter-State Council; established via Presidential Order 1990 based on Sarkaria Commission recommendation.
• Seventh Schedule – Lists 97 Union, 66 State, 47 Concurrent subjects; entries amended via 101st Amendment (GST added to Concurrent List).
• Entry 55, Union List – Centre controls inter-state rivers if Parliament declares in public interest; used in Krishna Water Disputes Tribunal.
• Entry 42, Concurrent List – Includes population control; states like Kerala implemented policies, but no national law exists.
• Article 312 – Creation of All-India Services (IAS, IPS, IFoS); requires Rajya Sabha resolution with 2/3 majority.
• Article 315–323 – Public Service Commissions; UPSC for Centre, SPSCs for states, Joint PSCs possible under Article 316.
• Article 280 – Finance Commission constituted every 5 years; 15th FC (2020–25) recommended 41% vertical devolution to states.
• Article 268–281 – Defines Union and State taxation powers; duties like stamp duty (268) shared, GST under 269AB (added by 101st Amendment).
• Article 270 – Taxes levied and distributed between Centre and States; includes income tax, GST (IGST, CGST, SGST).
• Article 275 – Grants-in-aid to states from Consolidated Fund of India; specified in FC awards, e.g., 15th FC allocated ?90,000 crore for revenue deficit grants.
• Article 282 – Allows expenditure from public funds for any purpose, even outside legislative competence; used for centrally sponsored schemes (CSS).
• Article 355 – Duty of Union to protect states against external aggression and internal disturbance; basis for deployment of central forces in Naxal-affected states.
• Article 356 – President’s Rule; imposed if constitutional machinery fails; used 134 times till 2023, first in Punjab (1951).
• S.R. Bommai v. Union of India (1994) – President’s Rule subject to judicial review; state assembly cannot be dissolved before parliamentary approval.
• State Public Service Commissions – Members appointed by Governor; removal only by President (Article 316).
• Sarkaria Commission (1983–88) – Recommended 247 measures; emphasized cooperative federalism, opposed frequent use of Article 356.
• Punchhi Commission (2007–10) – Recommended Inter-State Council as permanent body, review of Article 356, and strengthening of GST Council.
• GST Council – Established under Article 279A; voting weighted (Centre 1/3, States 2/3); decisions by 3/4 majority.
• Article 360 – Proclamation of Financial Emergency; never invoked; allows Centre to direct states on financial matters.

Difficulty Level

Intermediate – High factual density with overlapping constitutional provisions; UPSC frequently combines articles with case law and commissions.

Common UPSC Traps (3–5 factual traps)

Trap: President’s Rule can be imposed solely on Governor’s report – Fact: Governor’s report is advisory; President must be satisfied, and proclamation requires parliamentary approval under Article 356(3).
Trap: Finance Commission recommends both tax devolution and grants for schemes – Fact: FC recommends only vertical and horizontal devolution and revenue grants; scheme funding decided by Union Ministry of Finance.
Trap: Concurrent List gives equal power to Centre and States – Fact: In case of conflict, Union law prevails under Article 254(1), unless state law reserved for President’s assent and approved.
Trap: Inter-State Council is a constitutional body – Fact: It is statutory, created by Presidential Order 1990 under Article 263, not automatically constituted.
Trap: GST Council decisions are binding on states – Fact: GST Council makes recommendations; Parliament and state legislatures enact laws, though they generally follow Council’s decisions.

Practice MCQs (5–7 questions)

Question: Under which constitutional provision can Parliament legislate on a State List subject if it is necessary to implement an international treaty?
A) Article 249
B) Article 250
C) Article 252
D) Article 253
Answer: D
Explanation: Article 253 empowers Parliament to make laws on any subject (including State List) to implement international agreements.
Why others fail: Article 249 allows Rajya Sabha to authorize Parliament on State List in national interest, not treaty implementation.

Question: The Sarkaria Commission was primarily constituted to review:
A) Centre-State financial relations
B) Structure of All-India Services
C) Centre-State legislative relations
D) Role of Governor in states
Answer: C
Explanation: Sarkaria Commission (1983) was set up to examine Centre-State relations across all domains, with focus on executive and legislative spheres.
Why others fail: While it touched on finance and Governor, its primary mandate was broader legislative and executive coordination.

Question: Which of the following is correct regarding the Finance Commission?
A) It determines the allocation of funds under centrally sponsored schemes
B) It is constituted under Article 280 and submits report to President
C) It has the power to enforce its recommendations on state governments
D) It is established every four years by an Act of Parliament
Answer: B
Explanation: Article 280 mandates constitution of Finance Commission every five years by President; report submitted to President.
Why others fail: FC does not deal with CSS funding; its recommendations are recommendatory, not enforceable.

Question: In case of a conflict between a Central law and a State law on a subject in the Concurrent List, which prevails?
A) State law, if passed earlier
B) Central law, always
C) Central law, unless state law has received President’s assent
D) State law, if ratified by Supreme Court
Answer: C
Explanation: Article 254(1) states that Central law prevails; if state law reserved for President’s assent and approved, it prevails in that state.
Why others fail: Central law does not always prevail—President’s assent to state law creates exception.

Question: The Inter-State Council is established under:
A) Article 263
B) Article 356
C) Article 280
D) Article 312
Answer: A
Explanation: Article 263 empowers President to establish Inter-State Council for coordination; established in 1990.
Why others fail: Article 356 is for President’s Rule, Article 280 for Finance Commission, Article 312 for All-India Services.

Last?Minute Revision (20–25 one?liners)

• Article 246 + Seventh Schedule define legislative federalism.
• Union List: 97 subjects (e.g., defence, foreign affairs).
• State List: 66 subjects (e.g., police, public health).
• Concurrent List: 47 subjects (e.g., education, marriage).
• Residuary powers under Article 248 with Parliament.
• Article 249: Rajya Sabha can authorize Parliament to legislate on State List.
• Article 250: Centre can legislate on State List during Emergency.
• Article 252: Parliament can legislate for states on State List if requested.
• Article 253: Treaty implementation overrides State List.
• Article 254: Central law prevails in Concurrent List conflict unless state law gets President’s assent.
• Article 256: States must comply with Union laws.
• Article 257: Centre can give directions on inter-state infrastructure.
• Article 263: Basis for Inter-State Council (established 1990).
• Article 280: Finance Commission every 5 years.
• 15th FC: 41% vertical devolution to states (2020–25).
• Article 275: Grants-in-aid from Centre to states.
• Article 282: Spending for any public purpose, even outside legislative competence.
• Article 312: All-India Services require 2/3 Rajya Sabha support.
• S.R. Bommai case (1994): Judicial review of President’s Rule.
• Sarkaria Commission: 1983–88, 247 recommendations.
• Punchhi Commission: 2007–10, recommended permanent Inter-State Council.
• GST Council: Article 279A, weighted voting (Centre 1/3, States 2/3).
• GST Council decisions by 3/4 majority.
• Article 355: Centre’s duty to protect states.
• Article 356: President’s Rule, requires parliamentary approval.
• Article 360: Financial Emergency, never used.
• Verify from standard source: Number of times President’s Rule imposed (134 till 2023).