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1983
The Commission on Centre - State Relations (R.S Sarkaria)
Why constituted?
- Given the growing pressure for greater autonomy, in June 1983, the Union Government appointed a commission under the chairmanship of Justice R.S. Sarkaria to review the question of center-state relations.
- The commission submitted its report to the then prime minister
- The Sarkaria Commission went to considerable length to justify establishing a permanent Inter-State Council as an independent national forum for consultation with a mandate well defined by article 263.
It suggested establishing a permanent Inter-State Council. The executive powers of the Union and States overlap in many areas, and as such, the division of matters in the Union List and State List is not absolute. Several entries overlap. Union and States can entrust their executive functions to each other. States are dependent on the Union for financial resources and in many administrative matters. A process of consultation by the center on all concurrent subjects is not being done at present. The financial sphere did not favor any drastic changes in the basic scheme of division of taxes but favored sharing of corporation tax and levy of consignment tax. It selected new all-India services and favored retention of the national development council, and suggested activation of the zonal councils. It found the present division of functions between the finance commission and the planning commission as reasonable and favored the continuance of this arrangement. It favored the determination of terms of reference of the finance commission in consultation with the state governments. It also suggested setting up similar expert bodies at the state level.
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