Study this in the app →

English · हिन्दी · తెలుగు · தமிழ் · മലയാളം · मराठी · ಕನ್ನಡ

Administrative and financial relations, and inter-state bodies

मराठीत स्पष्टीकरण

Federalism and Centre-State Relations · Part 2 / 2 · Fact-checked on · how we check

Written with AI from the sources listed at the bottom of this page, then fact-checked by a separate AI.

How the Union directs and works with the States (Articles 256–261, 365, all-India services), inter-state water disputes and the Inter-State Council, the division of taxes and grants, the Finance Commission, GST and the GST Council, commissions on Centre-State relations, and freedom of trade (Articles 301–307).

Each idea is explained first in Marathi (मराठी), ending with the English and Hindi exam terms, followed by the same point in exam English. UPSC Prelims is in English or Hindi, so understand it in Marathi and revise it in English.

पहिल्या भागात कायदे करण्याची सत्ता संसद आणि राज्य विधिमंडळांत कशी वाटली ते पाहिले. पण कायदा केला की संपत नाही — तो राबवायचा, त्यासाठी पैसा लागतो, राज्यांमध्ये समन्वय लागतो. हा भाग त्याबद्दल: प्रशासकीय संबंध (256–261, अखिल भारतीय सेवा), राज्यांमधील वाद आणि सहकार्य हाताळणाऱ्या संस्था, करांची वाटणी (भाग XII, 2016 मध्ये जीएसटी), आणि देशभर व्यापाराचे स्वातंत्र्य (भाग XIII). एकत्र कुटुंबात प्रत्येकाचे स्वतंत्र स्वयंपाकघर असले तरी मोठी कमाई आणि मोठे निर्णय कर्त्याकडे असतात, तसे — वरचष्मा केंद्राचा. (→ English: Parliament · हिन्दी: संसद)

In exam EnglishPart 1 showed how law-making power is split between Parliament and the State legislatures. But laws must also be carried out, paid for and coordinated across State borders, and that is this part's subject: administrative relations (Articles 256 to 261 and the all-India services), the bodies that handle disputes and cooperation between States, the sharing of taxes and other money (Part XII, with the Goods and Services Tax added in 2016), and freedom of trade across the country (Part XIII). The States have their own governments and income, but the Union holds the stronger hand: it can give binding directions, it collects the biggest taxes, and it decides much of what the States receive.

256: प्रत्येक राज्याने आपली कार्यकारी सत्ता संसदेचे कायदे पाळले जातील अशा रीतीने वापरायची; त्यासाठी केंद्र निर्देश देऊ शकते. 257: राज्याने केंद्राच्या सत्तेत अडथळा आणायचा नाही; राष्ट्रीय किंवा लष्करी महत्त्वाचे दळणवळण मार्ग, रेल्वेचे संरक्षण यावर केंद्र निर्देश देऊ शकते. का? क्रिकेट मंडळाने नियम केला आणि एखाद्या राज्याच्या पंचाने तो धुडकावला तर सामना कसा चालेल? 365: केंद्राचा निर्देश पाळला नाही तर राज्याचा कारभार संविधानानुसार चालत नाही असे राष्ट्रपती मानू शकतात — तिथून राष्ट्रपती राजवटीचा मार्ग उघडतो (भाग 3). (→ English: President · हिन्दी: राष्ट्रपति)

In exam EnglishArticle 256 requires every State to use its executive power so that laws made by Parliament are obeyed, and allows the Union to give the State whatever directions it thinks necessary for this. Article 257 adds that a State must not obstruct the Union's executive power, and lets the Union direct States on building and maintaining means of communication of national or military importance and on protecting railways. The reason is practical: a national law on, say, elections means little if a State's officers ignore it. The teeth lie in Article 365: if a State fails to follow a Union direction, the President may hold that its government cannot be carried on in accordance with the Constitution. That opens the door to President's Rule, explained in Part 3.

सहकार्य दोन्ही दिशांनी. 258: राज्य सरकारच्या संमतीने राष्ट्रपती केंद्राची कामे राज्याकडे सोपवू शकतात; संसदेचा कायदा राज्याच्या अधिकाऱ्यांना अधिकार देऊ शकतो. 258A (7 वी दुरुस्ती, 1956): केंद्राच्या संमतीने राज्यपाल राज्याची कामे केंद्राकडे देऊ शकतात. 261: एका राज्याच्या नोंदी, न्यायालयीन कामकाज यांवर संपूर्ण देशाने पूर्ण विश्वास ठेवायचा; दिवाणी हुकूमनामा कुठेही अंमलात येतो. 312: राज्यसभेने उपस्थित व मतदान करणाऱ्यांच्या दोन-तृतीयांश मताने ठराव केला तर संसद नवी अखिल भारतीय सेवा निर्माण करू शकते; आयएएस, आयपीएस, 1966 मध्ये भारतीय वन सेवा. केंद्राने निवडलेला आयएएस अधिकारी आपला जिल्हाधिकारी होतो, ते हेच. (→ English: all-India services · हिन्दी: अखिल भारतीय सेवाएँ)

In exam EnglishCooperation also runs through delegation. Under Article 258 the President may, with a State's consent, entrust Union functions to that State or its officers, and a law of Parliament may confer powers on State officers. Article 258A, added by the 7th Amendment (1956), lets the Governor, with the Union's consent, entrust State functions to the Union. Article 261 asks every part of India to give full faith and credit to the public acts, records and court proceedings of the Union and every State, and a final civil decree can be executed anywhere in India. The human link is the all-India services (Article 312): after the Rajya Sabha resolves by two-thirds of members present and voting that a service is needed in the national interest, Parliament may create it by law. The IAS and IPS are treated as created under this Article, and the Indian Forest Service followed in 1966. Their officers are recruited by the Union but serve in the States.

नद्या राज्यांच्या सीमा ओलांडतात, आणि त्यांच्या पाण्यावरची भांडणेही. 262: आंतरराज्य नदीच्या पाण्याचा वापर, वाटप यांवरील वाद सोडवण्यासाठी संसद कायदा करू शकते, आणि सर्वोच्च न्यायालयासह कोणत्याही न्यायालयाला सुनावणीस मनाई करू शकते. आंतरराज्य नदी पाणी विवाद अधिनियम, 1956: राज्याने मागणी केली आणि चर्चेने सुटणार नाही असे केंद्राला वाटले तर त्या वादासाठी न्यायाधिकरण; 2002 च्या दुरुस्तीने त्याच्या निर्णयाला सर्वोच्च न्यायालयाच्या आदेशाइतके बळ. उदाहरण: 1990 मध्ये स्थापन कावेरी पाणी विवाद न्यायाधिकरण. चार घरे एकच विहीर वाटून घेतात तेव्हा गावातले जाणते बसून हिशेब करतात तसे — साधा खटला नव्हे. (→ English: tribunal · हिन्दी: अधिकरण)

In exam EnglishRivers cross State borders, and so do quarrels over their water. Article 262 lets Parliament provide by law for settling disputes over the use, distribution or control of inter-State river waters, and also lets it bar the Supreme Court and all other courts from hearing them. Parliament did both in the Inter-State River Water Disputes Act, 1956. When a State asks and the Union is satisfied that talks cannot settle the matter, the Union sets up a tribunal for that dispute; a 2002 amendment gave its decision the same force as a Supreme Court order. The Cauvery Water Disputes Tribunal, set up in 1990 for Karnataka, Tamil Nadu, Kerala and Puducherry, is the best-known example. The thinking is that sharing a river needs experts and patience rather than an ordinary lawsuit.

न्यायालयीन वाद नसलेल्या पण एकत्र विचार हवा असलेल्या प्रश्नांसाठी 263: लोकहित असेल तर राष्ट्रपती आंतरराज्य परिषद स्थापू शकतात — राज्यांतील वादांवर सल्ला, समान हिताच्या विषयांचा अभ्यास, धोरण समन्वयाच्या शिफारशी. अनुच्छेद 1950 पासून असूनही सरकारिया आयोगाच्या आग्रहानंतर 1990 मध्येच परिषद बनली. अध्यक्ष पंतप्रधान; सदस्य सर्व मुख्यमंत्री आणि काही केंद्रीय मंत्री. राज्य पुनर्रचना अधिनियम, 1956: पाच क्षेत्रीय परिषदा, अध्यक्ष केंद्रीय गृहमंत्री; ईशान्य परिषद 1971 च्या अधिनियमाने. या सोसायटीच्या सभेसारख्या — बोलून एकमत करतात, पण कुणावर सक्ती करू शकत नाहीत. (→ English: Inter-State Council · हिन्दी: अंतरराज्य परिषद)

In exam EnglishFor questions that need joint thinking rather than a court, Article 263 lets the President set up an Inter-State Council whenever the public interest would be served, to advise on disputes between States, study subjects of common interest and recommend better coordination of policy. The Article existed from 1950, but the Council was created only in 1990, by a Presidential order, after the Sarkaria Commission pressed for it. The Prime Minister chairs it; its members include the Chief Ministers of all States and of Union Territories with legislatures, and Union ministers chosen by the Prime Minister. Separately, the States Reorganisation Act, 1956 created five Zonal Councils, each chaired by the Union Home Minister, and the North Eastern Council has its own Act of 1971. All of these are advisory: they build agreement but cannot order a State.

पैशाच्या बाबतीत केंद्राचा वरचष्मा सर्वात स्पष्ट. 265: कायद्याशिवाय कर लावता किंवा वसूल करता येत नाही. सातवी अनुसूची: शेतीबाह्य उत्पन्न, कंपन्या, आयात यांवर केंद्र; शेती उत्पन्न, जमीन, मद्य, पेट्रोल-डिझेल विक्री यांवर राज्ये; कुठेच उल्लेख नसलेला कर शेषाधिकार म्हणून संसदेकडे. केंद्राचे उत्पन्न जास्त, राज्यांचा खर्च जास्त (पोलीस, आरोग्य, शाळा, शेती) — म्हणून वाटणी. 268–271 कोण कर लावतो, कोण वसूल करतो, कोण ठेवतो हे ठरवतात (तक्ता). 80 व्या दुरुस्तीनंतर (2000) 270: केंद्राचे सर्व कर एक सामायिक घडा, राज्यांशी वाटायचा — पण अधिभार (271) आणि उपकर घड्याबाहेर. घड्याबाहेरचा पैसा वाढला की आपला वाटा घटतो, अशी राज्यांची तक्रार. (→ English: residuary powers · हिन्दी: अवशिष्ट शक्तियाँ)

In exam EnglishMoney is where the Union's advantage is clearest. Article 265 says no tax may be levied or collected without the authority of law. The Seventh Schedule gives each level its own taxes: the Union taxes non-agricultural income, companies and imports; the States tax agricultural income, land, alcoholic liquor and the sale of petrol and diesel; and any unlisted tax belongs to Parliament under its residuary powers. Since the Union's taxes yield far more while the States carry most spending on police, health, schools and farming, the Constitution provides for sharing. Articles 268 to 271 sort Union-level taxes by who levies, collects and keeps them (see the table). Since the 80th Amendment (2000), Article 270 puts all Union taxes into a divisible pool shared with the States, except a few listed items, surcharges kept by the Union under Article 271, and cesses for specific purposes. States object that growing cesses and surcharges shrink the pool.
Union-level taxes: who levies, who collects, who keeps (Articles 268–271)
ArticleExampleLevied byWho collects and keeps it
268Stamp duties on bills of exchange, cheques and similar instruments in the Union ListUnionCollected and kept by the States
269Taxes on inter-State sale or consignment of goods (outside GST)UnionCollected by the Union, assigned wholly to the States
269AGST on inter-State suppliesUnionCollected by the Union, divided between Union and States as Parliament provides on the GST Council's advice
270Income tax, corporation tax, Central GST and other Union taxes (the divisible pool)UnionCollected by the Union, shared with the States as the Finance Commission recommends
271Surcharges on Union taxes (and, outside the pool, cesses for specific purposes)UnionKept wholly by the Union

कराचा वाटा एवढेच हस्तांतरण नाही. 275: मदतीची गरज असलेल्या राज्यांना संसद दरवर्षी सहायक अनुदान देऊ शकते — भारताच्या एकत्रित निधीवर भारित, वित्त आयोगाच्या सल्ल्याने; अनुसूचित जमातींच्या कल्याणासाठी आणि अनुसूचित क्षेत्रांचा प्रशासकीय दर्जा वाढवण्यासाठी विशेष अनुदान. 282: कोणत्याही सार्वजनिक हेतूसाठी केंद्र किंवा राज्य अनुदान देऊ शकते — केंद्र पुरस्कृत योजना यावरच; म्हणून राज्यांच्या विषयांत केंद्राचा हस्तक्षेप अशी राज्यांची तक्रार. कर्ज: 292 केंद्र संसदेच्या मर्यादेत; 293 राज्य फक्त भारतात, आपल्या विधिमंडळाच्या मर्यादेत — केंद्राचे कर्ज बाकी असेल तर नव्या कर्जाला केंद्राची संमती लागते. वडिलांचे कर्ज न फेडलेल्या मुलाला नवे कर्ज घ्यायला वडिलांची परवानगी लागते तसे. (→ English: grants-in-aid · हिन्दी: सहायता अनुदान)

In exam EnglishShared taxes are not the only transfer. Under Article 275 Parliament may make grants-in-aid, charged on the Consolidated Fund of India, to States in need of help, on the Finance Commission's advice, with special grants for the welfare of Scheduled Tribes and for better administration of Scheduled Areas. Article 282 is looser: the Union or a State may make grants for any public purpose, even outside its legislative field. Many centrally sponsored schemes rest on it, which is why States say it gives the Centre a voice in their subjects. The Union borrows on the security of the Consolidated Fund of India within limits set by Parliament (Article 292). A State may borrow only within India, within limits set by its legislature, and while it owes the Union money it needs the Union's consent for a new loan (Article 293).

सामायिक घडा कसा वाटायचा हे कोण ठरवते? 280: राष्ट्रपतींनी दर पाच वर्षांनी (गरज असल्यास आधी) वित्त आयोग नेमायचा — एक अध्यक्ष, चार सदस्य; पात्रता 1951 च्या अधिनियमाने. कामे: कर उत्पन्न केंद्र-राज्यांत किती (उभी वाटणी), राज्यांचा वाटा राज्यांमध्ये कसा (आडवी वाटणी), 275 अनुदानांची तत्त्वे; 73 व 74 व्या दुरुस्तीनंतर पंचायती, नगरपालिकांना मदत. फक्त सल्ला — 281: अहवाल आणि केलेल्या कारवाईचे टिपण दोन्ही सभागृहांपुढे. लग्नाचा खर्च दोन भावांत किती-किती हे तटस्थ वडीलधारी सांगतो तसे. 15 वा आयोग (एन.के. सिंह): 2021–26 साठी राज्यांना 41%; 16 वा आयोग (अरविंद पनगढिया): 2026–31. (→ English: Finance Commission · हिन्दी: वित्त आयोग)

In exam EnglishWho decides how the pool is divided? Under Article 280 the President sets up a Finance Commission every five years, or earlier, with a chairman and four other members whose qualifications are fixed by the Finance Commission (Miscellaneous Provisions) Act, 1951. It recommends how the net proceeds of shared taxes are split between the Union and the States (vertical devolution) and among the States (horizontal devolution), and the principles for grants under Article 275. Since the 73rd and 74th Amendments it also suggests how a State's Consolidated Fund can be strengthened to support panchayats and municipalities. It is advisory: under Article 281 its report goes before both Houses with a note on action taken. The Fifteenth Finance Commission, chaired by N.K. Singh, recommended a 41 per cent share for the States for 2021–26; the Sixteenth, chaired by Arvind Panagariya, covers 2026–31.

मोठा बदल म्हणजे जीएसटी. 101 वी दुरुस्ती (2016): उत्पादन शुल्क, सेवा कर, व्हॅट अशा अनेक करांऐवजी केंद्र आणि राज्ये वाटून घेणारा एकच कर. 246A: संसद आणि राज्य विधिमंडळे एकाच वेळी जीएसटी कायदे करू शकतात; आंतरराज्य पुरवठ्यावर फक्त संसद (269A: केंद्र वसूल करून वाटते). 279A: जीएसटी परिषद — अध्यक्ष केंद्रीय अर्थमंत्री, प्रत्येक राज्याचा एक मंत्री. निर्णयासाठी उपस्थित व मतदान करणाऱ्यांच्या भारित मतांपैकी तीन-चतुर्थांश (3/4); केंद्राचे मत 1/3, सर्व राज्ये मिळून 2/3 — एकट्याने कुणी जिंकू शकत नाही, दोन किल्ल्या लावल्याशिवाय न उघडणाऱ्या लॉकरसारखे. मद्य बाहेर; पेट्रोल, डिझेल वगैरे परिषदेने सुचवलेल्या तारखेपासूनच. मोहित मिनरल्स (2022): परिषदेच्या शिफारशी पटवून देणाऱ्या, बंधनकारक नव्हेत. (→ English: GST Council · हिन्दी: माल और सेवा कर परिषद)

In exam EnglishThe biggest change came with the Goods and Services Tax. The 101st Amendment (2016) replaced many Union and State taxes on goods and services, such as excise, service tax and State VAT, with one tax that both levels share. Article 246A lets Parliament and every State legislature make GST laws at the same time, but only Parliament legislates on inter-State supplies, whose tax the Union collects and divides under Article 269A. Article 279A creates the GST Council: the Union Finance Minister in the chair, a Union Minister of State, and one minister from each State. A decision needs three-fourths of the weighted votes of members present and voting; the Union's vote counts for one-third and the States together for two-thirds, so neither side can carry a decision alone. Alcohol for human consumption is outside GST; petrol, diesel and other petroleum items join only from a date the Council recommends. In Union of India v. Mohit Minerals (2022) the Supreme Court held that the Council's recommendations are persuasive, not binding.

केंद्र-राज्य समतोलाचा अनेकदा आढावा घेतला गेला. 1966: पहिला प्रशासकीय सुधारणा आयोग (केंद्र). 1969: तमिळनाडू सरकारने नेमलेली राजमन्नार समिती — राज्यांना खूप अधिक स्वायत्तता हवी असे म्हणणारी. 1983: सरकारिया आयोग (न्यायमूर्ती आर.एस. सरकारिया), 1988 चा अहवाल — संविधान बदलायची गरज नाही, पण मजबूत केंद्राने सल्लामसलतीने चालावे; कायमस्वरूपी आंतरराज्य परिषद; 356 शेवटचा उपाय. 2007: पुंछी आयोग (न्यायमूर्ती एम.एम. पुंछी), 2010 चा अहवाल. सहकारी संघराज्य पद्धती = केंद्र आणि राज्ये मिळून काम (जीएसटी परिषद, 2015 मध्ये आलेला नीती आयोग); स्पर्धात्मक = गुंतवणुकीसाठी राज्यांमध्ये स्पर्धा — एकाच शाळेतल्या तुकड्या क्रमांकासाठी स्पर्धा करतात तसे. (→ English: federalism · हिन्दी: संघवाद)

In exam EnglishThe Union-State balance has been reviewed many times. The first Administrative Reforms Commission (1966) examined Centre-State relations among other subjects. In 1969 the Tamil Nadu government appointed the Rajamannar Committee, which argued for far greater State autonomy. The Union's Sarkaria Commission, set up in 1983 under Justice R.S. Sarkaria, reported in 1988 that the Constitution need not be rewritten but a strong Centre must work by consultation; it called for a permanent Inter-State Council and advised using Article 356 only as a last resort. The Punchhi Commission (2007, under Justice M.M. Punchhi) reported in 2010 on how relations had changed since. Cooperative federalism means the Union and States working together, as in the GST Council and NITI Aayog, which replaced the Planning Commission in 2015. Competitive federalism means States competing to attract investment and govern better.
Commissions on Centre-State relations
BodySet up by, yearHeaded byKey point
First Administrative Reforms CommissionUnion, 1966Morarji Desai, later K. HanumanthaiyaReviewed administration, including Centre-State relations
Rajamannar CommitteeTamil Nadu government, 1969P.V. RajamannarSought much greater autonomy for the States
Sarkaria CommissionUnion, 1983 (report 1988)Justice R.S. SarkariaStrong Centre working by consultation; permanent Inter-State Council; Article 356 only as a last resort
Punchhi CommissionUnion, 2007 (report 2010)Justice M.M. PunchhiReviewed relations in the light of changes since Sarkaria

संघराज्याला देशभर एकच बाजारपेठ हवी. 301: संपूर्ण भारतात व्यापार, वाणिज्य मुक्त असेल. 302: लोकहितासाठी संसद निर्बंध घालू शकते. 303: एका राज्याला झुकते माप किंवा दुसऱ्याशी भेदभाव नको — कुठे मालाची टंचाई असेल तर संसदेला सूट. 304(a): परराज्यातील मालावर राज्य कर लावू शकते, पण आपल्या मालावरही तोच दर. 304(b): वाजवी निर्बंध — विधेयकाला आधीच राष्ट्रपतींची मंजुरी. समजा आपल्या राज्याने शेजारच्या राज्याच्या तांदळावर आपल्या तांदळापेक्षा जास्त कर लावला — हाच मनाई असलेला भेदभाव. जिंदाल स्टेनलेस (2016), नऊ न्यायाधीशांचे खंडपीठ: भेदभाव न करणारा कर स्वतःहून 301 चे उल्लंघन करत नाही. (→ English: Parliament · हिन्दी: संसद)

In exam EnglishA federation also needs one national market. Article 301 declares trade, commerce and intercourse throughout India free, subject to the rest of Part XIII. Parliament may restrict it in the public interest (Article 302), but neither Parliament nor a State may use the lists to prefer or discriminate between States (Article 303), except that Parliament may do so to meet a scarcity of goods. A State may tax goods from other States if similar local goods bear the same tax (Article 304(a)), and may impose reasonable restrictions in the public interest, but such a bill needs the President's previous sanction (Article 304(b)). Suppose a State taxed a neighbour's rice more heavily than its own: that is the discrimination Article 304(a) forbids. In Jindal Stainless Ltd v. State of Haryana (2016) a nine-judge Bench held that a non-discriminatory tax does not by itself offend Article 301.

एकूण पाहता — असमान अटींवरची भागीदारी. कारभार बहुतांश राज्यांचा, पण 256, 257, 365 नुसार केंद्राचे कायदे, निर्देश पाळायचे; अखिल भारतीय सेवांचे अधिकारी दोन्ही पातळ्या जोडतात. उत्पन्न बहुतांश केंद्राचे, पण स्वतंत्र वित्त आयोगामार्फत सामायिक घडा वाटायचा, शिवाय अनुदाने; जीएसटी परिषदेत अप्रत्यक्ष करांवर मिळून निर्णय. पाण्याचे वाद न्यायाधिकरणांकडे, मोठे प्रश्न सल्लागार परिषदांकडे, व्यापाराचे अनुच्छेद देशाला एक बाजारपेठ ठेवतात. दोन भागीदारांच्या धंद्यात एकाचे भांडवल जास्त, दुसऱ्याचे कष्ट जास्त — दोघेही हवेत. भाग 3: ही भागीदारी थांबून केंद्र सूत्रे हाती घेते त्या आणीबाणीच्या तरतुदी. (→ English: Finance Commission · हिन्दी: वित्त आयोग)

In exam EnglishPut together, this part shows a partnership on unequal terms. The States run most of the administration, but under Articles 256, 257 and 365 they must carry out Union laws and directions, and officers of the all-India services bind the two levels together. The Union raises most revenue, but must share the divisible pool through an independent Finance Commission and may add grants, while the GST Council makes both levels decide indirect taxes jointly. Water disputes go to tribunals, wider questions to advisory councils, and the trade Articles keep India one market. Part 3 turns to the moments when the partnership is suspended and the Union takes over: the emergency provisions.

Exam traps

Recap

Practice questions

Q1. Under which Article of the Constitution can the President establish an Inter-State Council?

  1. Article 262
  2. Article 263
  3. Article 280
  4. Article 279A
Show answer

Answer: B. Article 263

Article 263 lets the President set up a council for inquiring into disputes between States, studying subjects of common interest and recommending better coordination. Article 262 deals with inter-State river water disputes, Article 280 with the Finance Commission and Article 279A with the GST Council.

Q2. Consider the following statements about the GST Council:
1. It is chaired by the Union Finance Minister.
2. Its decisions require a two-thirds majority of the weighted votes of the members present and voting.
Which of the statements given above is/are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2
Show answer

Answer: A. 1 only

Statement 1 is correct under Article 279A. Statement 2 is wrong: the Council decides by three-fourths of the weighted votes of members present and voting, with the Union holding one-third and the States together two-thirds. So '2 only', 'both' and 'neither' are wrong.

Q3. Match List I with List II:
List I (Article)
A. Article 262
B. Article 280
C. Article 293
D. Article 301
List II (Subject)
1. Finance Commission
2. Borrowing by States
3. Freedom of trade, commerce and intercourse
4. Disputes over inter-State river waters
Select the correct answer using the code given below:

  1. A-4, B-1, C-2, D-3
  2. A-1, B-4, C-2, D-3
  3. A-4, B-1, C-3, D-2
  4. A-4, B-2, C-1, D-3
Show answer

Answer: A. A-4, B-1, C-2, D-3

Article 262 covers water disputes, 280 the Finance Commission, 293 borrowing by States and 301 freedom of trade. The second code swaps 262 and 280, the third swaps 293 and 301, and the fourth swaps 280 and 293.

Q4. Consider the following statements:
1. Cesses levied by the Union for specific purposes form part of the divisible pool shared with the States under Article 270.
2. Surcharges on Union taxes under Article 271 go wholly to the Union.
Which of the statements given above is/are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2
Show answer

Answer: B. 2 only

Statement 1 is wrong: Article 270 expressly leaves cesses for specific purposes out of the shared pool. Statement 2 is correct: surcharges under Article 271 are for the Union alone. So '1 only', 'both' and 'neither' are wrong.

Q5. Which one of the following was created by an Act of Parliament and not directly under an Article of the Constitution?

  1. Finance Commission
  2. Inter-State Council
  3. Zonal Councils
  4. GST Council
Show answer

Answer: C. Zonal Councils

The Zonal Councils were created by the States Reorganisation Act, 1956. The Finance Commission is required by Article 280, the Inter-State Council was set up under Article 263 (by a Presidential order of 1990) and the GST Council is created by Article 279A.

Q6. Consider the following statements about the Finance Commission:
1. It consists of a chairman and four other members appointed by the President.
2. Its recommendations on the sharing of taxes are binding on the Union government.
Which of the statements given above is/are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2
Show answer

Answer: A. 1 only

Statement 1 is correct under Article 280. Statement 2 is wrong: the Commission is advisory, and Article 281 only requires its recommendations to be laid before Parliament with a note on the action taken. So '2 only', 'both' and 'neither' are wrong.

Q7. A State bill imposing reasonable restrictions on trade with other States in the public interest under Article 304(b) can be introduced in the State legislature only with:

  1. The previous sanction of the President
  2. The recommendation of the Governor
  3. A resolution of the Rajya Sabha
  4. The approval of the Inter-State Council
Show answer

Answer: A. The previous sanction of the President

The proviso to Article 304(b) requires the President's previous sanction for such a bill. The Governor's recommendation is the rule for State Money Bills, not this case; a Rajya Sabha resolution is needed under Articles 249 and 312, not 304; and the Inter-State Council is only advisory.

Q8. Consider the following statements:
1. Under Article 258A, the Governor of a State may, with the consent of the Union government, entrust State functions to the Union.
2. A new all-India service can be created only by amending the Constitution.
Which of the statements given above is/are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2
Show answer

Answer: A. 1 only

Statement 1 is correct: Article 258A, added by the 7th Amendment (1956), allows this. Statement 2 is wrong: under Article 312 a Rajya Sabha resolution backed by two-thirds of members present and voting, followed by an ordinary law of Parliament, is enough. So '2 only', 'both' and 'neither' are wrong.

← Part 1All partsQuick recap →

Study this in the Upscore app to keep notes, save it for revision, track your practice scores and follow a plan to the exam date. It's free.

Study this in the app →

Sources