Previous Year Question

The Government of India constituted the Sarkaria Commission on 9 June 1983 under the chairmanship of retired Supreme Court Judge Justice R. S. Sarkaria. Its principal task was to review the working of the existing arrangements between the Union and the States regarding powers, functions and responsibilities and recommend appropriate changes.

Thus, the scope of the Commission was not confined merely to distribution of revenue. Its examination covered several aspects of the federal arrangement, including legislative relations, administrative relations, financial relations, the role of Governors, Article 356, All India Services and inter-governmental coordination. Therefore, the broader and correct answer is Centre-State Relations.

The Sarkaria Commission made 247 recommendations on different aspects of Centre-State relations. One of its important recommendations was the establishment of a permanent Inter-State Council under Article 263. Acting on this recommendation, the Inter-State Council was established by Presidential Order on 28 May 1990.

For examination purposes, the distinction is important: the Finance Commission is a constitutional body primarily concerned with financial distribution between the Union and the States, whereas the mandate of the Sarkaria Commission was a wider review of Centre-State Relations.