• UGI USER
  • Sep 18, 2023
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Q. The Seventh Schedule is a relic from the colonial past inherited from the Government of India Act, 1935 which needs to be revisited for improving Centre-state relations. Discuss.

Approach:

  • Contextualize the answer by giving a brief introduction of the Seventh Schedule.
  • Write about the concerns associated with it.
  • Suggest the measures which can improve the emerging situation in this context.
  • Conclude accordingly.

Answer:

  • The Government of India Act, 1935 laid down the scheme of distribution of legislative powers into three lists, which has been retained in the Indian Constitution under Article 246 in the form of Seventh Schedule.

However, in this context, many experts including the Chairman of the 15th Finance Commission have advocated revisiting the Seventh Schedule due to the following factors:

  • Archaic: A subject that was vital for legislative allocation in 1950 may no longer be relevant in the present. Also, the needs of governance change with time. For example, Entry 37, List III concerned with Boilers and Entry 34, List I dealing with Courts of Wards for the estates of rulers of Indian states.
  • Service delivery: The Central government presently dominates state governments in matters of delegation of funds, functions and functionaries, rendering them inefficient in responding to citizens’ demands for efficient delivery of public goods.
  • Dominant position of the Centre: The Schedule provides primacy to laws made on the Union List over State List or Concurrent List. Similarly, laws made by the Parliament on the Concurrent List will prevail over those made by the states on the same subject.
  • Increasing centralization: Since 1950, the number of subjects in the Union List (from 97 to 100) and Concurrent List (from 47 to 52) have grown while subjects under the State List (from 66 to 61) have gradually reduced. Additionally, the 42nd Amendment Act, 1976, transferred five subjects i.e., education, forest, protection of wild animals and birds, administration of justice, and weights and measurements to the Concurrent List.
  • Appropriate placement: Some subjects need to be transferred to the State list or the Concurrent List keeping in mind the inter-state asymmetry, diversity of cultural groups and federal ethos. For instance, although mentioned explicitly under the State list, ‘land’ overlaps with acquisition and requisition of property (Entry 42 of the Concurrent list), and transfer of property other than agricultural land (Entry 6 of Concurrent list).
  • Demands of various states: Many states, over the years, have called for a complete restructuring of the Seventh Schedule. For example, Rajamannar Committee in Tamil Nadu, 1969 and the Anandpur Sahib Resolution in Punjab in 1973.

In this regard, the following steps can be taken to ensure a more equitable and beneficial distribution of powers between the Centre and the states:

  • Constitution of a High-Powered Commission: It should consist of eminent lawyers and jurists with administrative experience to examine the entries in the Seventh Schedule and suggest redistribution of the entries.
  • Institutional framework: There should be a consultative forum for credible policy dialogue between the Centre and the states to give a boost to cooperative federalism.

Implement the recommendations of the Sarkaria Commission:

  • Residuary power: Residuary powers should be transferred from the Union List to the Concurrent List, except for the residuary power to impose taxes.
  • Concurrent List: States should be consulted by the Centre before exercising power over the Concurrent List.
  • Periodic review: There should be a periodic review of the Lists, focusing on removal of outdated entries, addition of new entries, and appropriate placement of existing entries.
  • Transfer of entries: As per the Punchhi Commission, the Centre should only transfer those subjects to the Concurrent List, which are necessary for ensuring uniformity in basic issues of national policy.

Therefore, These steps would help improve the federal structure in India while ensuring that the federal units do not overstep the administrative and legislative limits of one another.