Imagine that you were to rewrite the provisions regarding federalism. Write an essay of not more than 300 words making your suggestions about:

(a) division of powers among the centre and the States,

(b) distribution of financial resources,

(c) methods of resolving inter-State disputes and

(d) appointment of Governors

Federalism: As we know the federalism is an institutional mechanism to accommodate two sets of polities-one at the regional level and the other at the national level.

(a) Division of Powers: There are two sets of governments the Central government and the State Governments. The disputes between the two are settled by the judiciary and the Constitution is supreme. The Constitution clearly demarcates the subjects. It shows how the powers are distributed between the Centre and the States. The Centre has the important powers. The economic and financial powers are centralised in the hands of the central government by the constitution.

(b) Distribution of financial resources: There are certain taxes which are levied by the centre, but are collected by the states e.g. stamp duty and the taxes on the production of medicines and cosmetic preparations. There are certain other taxes which are levied and collected by the centre and are distributed among the states. Taxes included in this category are duties on the succession of property other than agricultural land, terminal taxes on goods or passengers carried by air, sea or railway, taxes on railway freights and fares, taxes on newspapers, taxes on state trade or commerce etc. are taken by the centre. Some other taxes are such as levied and collected by the centre but those are distributed between centre and the states. Income tax on the income other than that from the agricultural land, is included in this category. Income tax is distributed between the centre and the state on the recommendations of the Finance Commission. States of Assam, Bihar, Orissa and West Bengal are given grants in lieu of export duty on jute and jute products.

(c) Methods of resolving inter-State disputes: In the public interest, the Parliament may establish an inter-State council if it deems so necessary. This council enquires into the interstate disputes and then finally submit its report or recommendations to the Parliament.

Haryana, Punjab dispute on Chandigarh, Madhya Pradesh, Gujarat and Maharashtra have dispute over sharing the water of Narmada river.
(d) Appointment of Governors: The Governors of the state are appointed by the President on the advice of the Council of Ministers of the Centre. He has the power to remove them as well. That is why the Governors normally work as representatives of the Central Government in the states. They inform the centre about the conditions of the state off and on.