TABLE OF CONTENTS

CENTRE’S DIRECTION TO STATE .................................................................................................................... 2

STATEMENT OF PROBLEM: ........................................................................................................................... 2
SURVEY OF EXISTING LITRATURE: ................................................................................................................. 3
IDENTIFICATIONS OF ISSUES: ........................................................................................................................ 4
SCOPE OF RESEARCH..................................................................................................................................... 5
RESEARCH METHODOLOGY .......................................................................................................................... 5
PROBABLE OUTCOMES: ................................................................................................................................ 6
CHAPTERIZATION .......................................................................................................................................... 6
 CENTRE’S DIRECTION TO STATE

STATEMENT OF PROBLEM:
Centre-state relations is one of the most contentious topics for people who are interested in
the study of devolution of powers between the state and central government

 Distribution of finances between the different levels of governements.

 The role of Governor.
 No involvement of the state government in handpicking administrative machinery(as
needs and qualities of the officers required by various state government varies
especially All India Services cadre).
 Inability of the state government to take action towards administrative machinery
particularly All India Services.
 Feeling of imposition of certain issues by the Central Governement on states.

Now, coming to the question - what can be done :

 For solving the issues of distribution of funds and feeling of imposition of certain issues
by the Central Governement on states - I personally liked the recommendation of the
Sarkari Committee to set up a permanent Inter-State Council called the
Intergovernmental Council by using Article 263 ( thorough debates and negotiations can
be done with all state governments so that majority of the states are not effected).The
role of Governor is important (even though he is appointed by the President, who acts
on the behest of the Union Cabinet) because he is the who decides whether to give
assent to the bills passed by the Assembly or reserve it for the reconsideration of the
President (Article 200) - this power may be misused to logjam the functions of the state
government in case it is not an ally of the Centre Government. Also, the provisions given
to the Governor to recommend emergency provisions in the state,whatever the
situation and reason maybe, like dismissing the state government and impose
 President's Rule. To address this issue, giving the State Government a say while
choosing the Governor can somewhat reduce this problem.
 Needs of states varies based on their conditions present in the state. For smooth and
effective functioning of the administrative machinery(AIS) offering states the choice to
select candidates based on his/hers strengths might address the issue. Or else asking
the state governments what kind of administrative machinery they need like states
which are in need of land reforms or revenue might request for people who are
interested and strong in that certain area.
 As of the issue of taking action towards administrative machinery is concerned it is best
dealt by the central government on the recommendations and reasons provided by the
respective state government so that opinion of all the parties involved is taken.

SURVEY OF EXISTING LITRATURE:

In the late 1990’s India’s States were facing sharp fiscal deterioration. The problem was
particularly serious in the poorer States. A slow deterioration in fiscal performance over the
1980s and 1990s was culminated into a State- level fiscal crisis by the late 1990’s. Almost all
the States had to revise the salaries of their employees as they were under the tremendous
pressure to do so after the Central government, implementing the recommendations of Fifth
Central Pay Commission, hiked the salaries of its employees in 1998. Unlike the Central
government, State governments’ fiscal performance did not show any improvement in the
first half of 1990s, and their deterioration in the second half has been rather sharp. In a
fiscal federalism crises at one level of government are bound to spillover. So far as the
fiscal imbalances are concerned, which continued till today, had appeared in the Central
government’s budget in the form of deficit in its revenue account in 1979-80. States’
revenue account experienced the same in the later half of the 1980’s. Warnings about the
sustainability of fiscal stance and the impending crises started appearing in academic and

professional circles since around mid 1980’s (Rao SRK 1986).2 But the entire literature on
Indian Public Finance remained focused on the fiscal crises faced by Central government.
State government finances, though, started showing deterioration remained largely
neglected. Even when the crises situation forced Government of India to undertake
economic reforms, which included fiscal discipline, no serious beginning was made for such
at the State level. The point largely missed by the government and academics alike was
that reforms would not succeed unless undertaken simultaneously at both the levels. In a
fiscal federalism Centre and States are not the watertight compartments and therefore the
Center cannot remain insulated from the happenings at the State levels

So the analytical framework and the logic employed to study the Central
governments finances are equally applicable for so at the State level.

India’s fiscal federal system has served the country well, and has brought stability over an
extended period of time. But with the growing fiscal stress, and divergence in performance,
the system itself came under scrutiny if it was responsible for the imbalances in the State
finances. Therefore the literature scanned for the purpose of present study can be classified
into three categories.

 The theoretical framework (or in other words, the economics of deficits).

 The theoretical and the empirical studies on fiscal federalism.
 Analytical studies on the fiscal imbalances in the Central and in the State
government’s finances.

IDENTIFICATIONS OF ISSUES:
 Distribution of finances between the different levels of governements.
 The role of Governor.
 No involvement of the state government in handpicking administrative machinery(as
needs and qualities of the officers required by various state government varies
especially All India Services cadre).
  Inability of the state government to take action towards administrative machinery
particularly All India Services.
 Feeling of imposition of certain issues by the
 Central Governement on states.

SCOPE OF RESEARCH
The scope of the research is limited to the Indian legal system. The project works on bring out
the various aspects and knowledge on the centre directions to the state. Some keen
observation will also be made in the comparative study between the system in India and that of
other countries such as United States of America. The research will make the reader aware to
the things related to the relation of the centre and state in the constitution of India.

RESEARCH METHODOLOGY
The researcher will rely heavily on the various relation of the centre and direction to
demonstrate researcher’s hypothesis. And in the meanwhile, rely on various articles related to
constitution.

My methodology for this project is Conceptual Research. The step by step method I will adopt
to make this project is-

1. To understand the topic thoroughly.

2. Find sources from Articles on Internet, Books etc. for the research.

3. To study them, and understand them with their practical applicability.

4. To filter the important information that is required to make project.

5. To write them systematically according to the chaptarization.

6. To submit it to the teacher for evaluation.

PROBABLE OUTCOMES:
The probable outcomes after the reader will read the article that he will be able to understand
the relation of the state and the centre as the constitution of the India has adopted the fedral
government. So there are many of the relation that the state and centre government has to
maintain for the proper working of the government. So the things will be highlighted that will
make the reader aware to the relation and direction.

CHAPTERIZATION
 Definition of State and Centre
 Type of government India have
 Relation of Centre and State

*further topics will be added as per the need.