Inter-State Council

Established under Article 263 of the Constitution, Inter-State Council is a constitutional body that offers guidance on resolving potential disputes, discusses matters of shared interest, and suggests improvements for policy coordination. However, its advisory role, limited discussion scope, infrequent meetings, and lack of accountability for its recommendations are some limitations that may curtail its effectiveness. In this article, you will learn about the post of meaning and definition of Inter-State Council, it’s objective, function, challenges and suggestions, all of which are very important topic for GS Paper-2 Polity & Governance of UPSC CSE Exam. To explore more interesting UPSC Polity concepts similar to Inter-State Council, check out other articles of IASToppers.  

Table of Content

• Introduction
• History of Inter-State Council
• Members of the Inter-state Council
• Functions of Inter-State Council
• Limitations of Inter-State Council
• Recommendations for Inter-State Council
• Conclusion
• FAQs on Inter-State Council

Introduction

• It is a mechanism constituted to support Centre-State and Inter-State coordination and cooperation in India.
• It was established under Article 263 of the Constitution.
  • Article 263 states that president has the authority to set up such a council whenever he believes it’s in the public interest to do so.

History of Inter-State Council

• In 1988, the Sarkaria Commission recommended that such council should exist as a permanent body.
  • Government of India constituted Sarkaria Commission to review the working of the existing arrangements between the Union and the States.
• Following the Sarkaria Commission’s advice, the Inter-State Council was created in 1990 by the Janata Dal Government, led by V. P. Singh.
• The President is tasked with outlining the duties the council is to perform, along with its structure and operating procedures.

Members of the Inter-state Council

• Chairman of Inter-State Council: Prime Minister 

Council members:

• Chief Ministers of all the States and UTs having legislative assemblies,
• Administrators of the UTs without assembly,
• Governors of the States under rule of the President, and
• Six ministers in the Cabinet (including the home minister) nominated by the Prime Minister 

5 Ministers of Cabinet rank or Ministers of State (independent charge), appointed by Prime Minister, serve as permanent attendees.

Standing committee of the Inter-State Council

• In May 2022, the government has reconstituted the standing committee of the Inter-State Council whose chairman is Union Home Minister.
• The Chief Ministers of Andhra Pradesh, Assam, Bihar, Gujarat, Maharashtra, Odisha, Punjab and Uttar Pradesh are also members of the standing committee of the Inter-State Council.

Functions of Inter-State Council

Article 263 shows potential duties of an inter-state council. These include:

• Conducting inquiries into and providing advice on potential disputes arising between states.
  • The council’s role in offering advice on inter-state disputes complements the jurisdiction of the Supreme Court under Article 131 to adjudicate legal disputes between governments.
• Examining and discussing topics of mutual interest to the states, or to both the states and the Centre.
• Offering recommendations on such subjects, with an emphasis on improving the coordination of policy and actions pertaining to them.

Other Functions

• Act as an advisory entity on matters concerning inter-state, Centre-state, and Centre-Union Territory relations.
• Pondering over other issues of widespread interest to the states as referred to it by the Chairman.

Following the directives of Article 263, the President has sanctioned the creation of several councils to provide recommendations for improving policy coordination in their respective fields. These include:

• The Central Council of Health and Family Welfare
• The Central Council of Local Government
• Four Regional Councils for Sales Tax assigned to the Northern, Eastern, Western, and Southern Zones.

Limitations of Inter-State Council

• Advisory Role: The Council has the jurisdiction to handle any dispute, whether legal or non-legal. However, unlike the court, which issues binding decisions, the Council’s role is advisory. As a result, its recommendations can be and often are ignored by both the central and state governments, limiting its impact.
• Limited Scope for Discussion: ISC has established guidelines to clarify its deliberative scope, which restricts certain topics, such as those under the Finance Commission’s purview, from discussion. Topics related to the Union’s constitutional duties or special responsibilities are also excluded unless a majority of members, with the Chairman’s approval, consider them significant.
• Inconsistent Meetings: The Council is supposed to meet three times a year, but this has not been the case in practice. For example, there was a ten-year gap between the 10^th meeting in 2006 and the 11^th meeting in 2016. This infrequent meeting schedule hinders its effectiveness.
• Lack of Accountability for Recommendations: Both the presidential order forming ISC and the ISC’s own guidelines fail to address the impact of ISC’s recommendations. Neither the Union nor State Governments are obligated to consider these recommendations, resulting in under-utilization of the ISC for national consensus-building on economic and other matters.
• Non-participatory: Civil society, which includes citizens and organizations, is not engaged in the Council’s activities. This lack of engagement makes the Council less inclusive and cooperative, reducing its effectiveness and legitimacy.

Recommendations for Inter-State Council

• Constitutional Amendment: The 11^th Finance Commission’s report suggested amending Article 263 to make ISC accountable for decisions on fiscal policies with inter-State or Centre-State implications The recommendation also emphasized regular ISC meetings to ensure a national consensus on all crucial issues.
• Establishment of an Expert Committee: To provide pertinent inputs on proposed financial allocations, the ISC should establish an Expert Committee. This Committee, independent from political influences, would provide insights on grants proposed by the Centre to the States.
• Staffing and Coordination: To foster trust and enhance coordination, staff from both the Centre and the States should be assigned to the ISC Secretariat. This strategy mirrors the approach taken by Canada’s Inter-Governmental Conference Secretariat.
• Enhancing Secretariat Resources: The Secretariat’s infrastructure and resources should be improved to increase efficiency.
• Involving States in Financial Decisions: The National Commission’s report suggested that States should participate in determining the additional terms of reference for the Finance Commission. This could be achieved through the National Development Council (NDC) discussion and endorsement, ensuring a comprehensive view of financial relations between the Centre and the States.

Conclusion

The Inter-State Council plays a vital role in fostering coordination between the Centre and the states in India. However, it faces several challenges that limit its effectiveness, such as its advisory role, limited scope for discussion, infrequent meetings, lack of accountability for recommendations, and non-participatory nature. To overcome these challenges, new reforms should be incorporated so as to facilitate better policy coordination and consensus-building among the states and the Centre

Ref: Source-1

Other Articles in Polity & Governance
Special Category Status	Fundamental Duties in India
Emergency Provisions in Indian Constitution	Powers of President of India
Citizenship Amendment Act (CAA) 2019	Societies Registration Act, 1980

FAQs (Frequently Asked Questions)