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The executive power of every state must comply with the laws made
by the Parliament. The executive power of the state should be
exercised in a manner that it does not impede of prejudice the
executive power of the Union. The centre can direct the states if
matters of national importance are concerned. During emergency,
Union government can assume vast administrative powers.
The financial relations between the centre and state are the main
subject of controversy now-a-days. While deciding these relations
the fathers of the Constitution followed the India Act of 1935. Some
taxes are levied and collected exclusively by the central government
while others are levied and collected only by the states. These are
taxes levied by the centre which are collected by the states and
others which are levied and collected by the centre and given to the
states.
The centre gives grants-in-aid to the states from the consolidated
fund. The Construction makes it clear that state legislature can
make laws relating to taxes for the benefit of the state. Such a
system cannot last longer. According to Dr Jenning " ...
arrangement of this character always proves to be unsatisfactory
after ten years or so". But there is a provision for setting up a
Finance Commission after five years.
The Planning Commission is criticized on the ground that it has no
statutory basis though it exercises enormous powers. States are left
with no initiative because clearance for every scheme is given by the
Planning Commission. The allocation of funds, it is alleged is not
proper. Punjab wants the allocation to be made on the basis of
population : Himachal Pradesh wants it on area basis, whereas West
Bengal insists on the basis of the economic conditions of the state.
In fact serious thought should be given to centre-state relations.
Power-wresting strategies have deprived the issue of its sanctity. As
all the central leaders belong to the states and all the people of the
states belong to India, the centre should not be reluctant to review
the centre state relations. At least the irritants should be remo