Supreme Court Review on Governor’s Role in Assent to State Bills

Governor’s Role

Governor’s Role Latest News

  • The Supreme Court is examining a Presidential reference on whether timelines can be fixed for Governors and the President in giving assent to State Bills, amid debates over Articles 200 and 201 of the Constitution.

Introduction

  • The Supreme Court of India is currently examining a crucial constitutional reference concerning the role of Governors in the legislative process of States. 
  • The issue revolves around whether fixed timelines should be mandated for Governors and the President in granting assent to Bills passed by State legislatures. 
  • This matter has significant implications for Centre-State relations and India’s federal framework, especially at a time when multiple States have accused Governors of deliberately delaying assent to Bills, thereby obstructing governance.

The Role of Governors in Assent to Bills

  • Under Article 200 of the Constitution, when a Bill is passed by a State legislature, it is presented to the Governor for assent. The Governor has the following options:
    • Grant assent to the Bill.
    • Withhold assent.
    • Reserve the Bill for the consideration of the President.
    • Return the Bill (if not a Money Bill) with a message for reconsideration.
  • If the Bill is again passed by the legislature, the Governor is constitutionally bound to give assent. 
  • However, the Constitution does not prescribe any timeframe for the Governor’s decision, leading to controversies where Governors have sat on Bills indefinitely.
  • Similarly, Article 201 governs the President’s assent when a Bill is reserved for consideration. Even here, no timeline exists for the President to act, which sometimes results in prolonged delays.

Debate on Fixing Timelines

  • The absence of clear timelines has become a major flashpoint in Centre-State relations. 
  • Several States, including Tamil Nadu, Kerala, Punjab, and Telangana, have complained of Governors withholding or delaying assent to Bills, thus stalling key reforms.
  • The Supreme Court, while hearing the reference, is considering whether judicially enforceable timelines can be set to prevent such delays. 
  • Proponents argue that indefinite inaction by Governors violates the spirit of parliamentary democracy and undermines the functioning of elected governments.
  • On the other hand, critics caution that imposing strict timelines may constrain the discretionary powers vested in Governors and the President, potentially upsetting the delicate constitutional balance.

Background of the Case

  • The matter reached the Supreme Court through a Presidential Reference under Article 143, following disputes raised by multiple States. 
  • The Union government has argued that Governors act within their constitutional role and that delays may sometimes be due to the need for greater scrutiny or consultation with the Centre.
  • However, the Supreme Court in earlier cases, such as Shamsher Singh v. State of Punjab (1974) and Nabam Rebia v. Deputy Speaker (2016), has emphasised that the Governor is bound by the aid and advice of the Council of Ministers, except in a few exceptional circumstances.
  • The present reference is an attempt to resolve whether Governors’ inaction can be constitutionally limited through prescribed timelines, ensuring accountability without undermining constitutional checks.

Summary of the Current Issue

  • According to the reports, the Supreme Court is deliberating on the question of fixing time-bound limits for Governors and the President in granting assent to Bills. 
  • The Court has acknowledged that prolonged delays effectively amount to a pocket veto, which was never envisaged in the Constitution.
  • The bench is also exploring whether such timelines should be left to the legislature to define through constitutional amendment or whether the Court can lay down broad principles under its powers of interpretation.
  • This debate holds far-reaching implications for India’s federal structure. While Governors are meant to be neutral constitutional authorities, their actions are often viewed through the prism of partisan politics, especially when different parties are in power at the Centre and in the State. 
  • By addressing this grey area, the Supreme Court’s eventual decision could significantly reshape the relationship between Governors and State legislatures.

Implications for Federalism

  • Strengthening Legislative Authority: Time-bound assent would reinforce the authority of elected State legislatures, reducing executive interference.
  • Preventing Political Deadlocks: It would minimise friction between Governors and State governments, ensuring smoother legislative functioning.
  • Judicial Oversight on Federal Balance: The case marks an important judicial intervention in clarifying ambiguities of the Constitution that impact Centre-State relations.
  • Setting a Precedent: The ruling could also influence debates on other constitutional offices where delays in decision-making affect governance.

Source: TH

Governor's Role FAQs

Q1: What does Article 200 of the Constitution deal with?

Ans: It deals with the Governor’s options when a Bill passed by a State legislature is presented for assent.

Q2: Can a Governor indefinitely delay assent to a Bill?

Ans: Currently, the Constitution provides no timeline, which has led to prolonged delays in several States.

Q3: What is Article 201 of the Constitution?

Ans: It provides for the President’s assent when a State Bill is reserved for consideration by the Governor.

Q4: Why is the Supreme Court examining this issue now?

Ans: Multiple States have complained of Governors delaying Bills, leading to a Presidential reference to the Court.

Q5: How could fixing timelines impact federalism?

Ans: It would strengthen State legislatures, reduce political deadlocks, and reinforce democratic accountability.

Low Inflation in India: Fiscal Challenges and Nominal GDP Growth Impact

Low Inflation in India

Low Inflation in India Latest News

  • Recent data showed CPI inflation at 2.07% and WPI inflation at 0.52% in August, offering relief to households. 
  • However, such low inflation complicates the government’s budget calculations and fiscal management, making revenue mobilisation harder even as consumers benefit from stable prices.

Understanding Inflation

  • Inflation refers to the general rise in prices across an economy, often triggered by increased supply of money. 
  • Rising input costs, such as oil or food, also push prices higher, reducing the value of money.
  • The primary effect is erosion of purchasing power—the same amount of money buys fewer goods and services. 
  • While wages may adjust, most people end up spending more on essentials like food and rent.

Benefits of Inflation

  • Moderate inflation can stimulate economic growth when resources are underutilised. 
  • More spending fuels production and jobs. Keynes argued it prevents the Paradox of Thrift, where falling prices discourage spending. 
  • Inflation also eases debt burdens, as repayments are made with less valuable money, benefiting debtors and fixed-rate homeowners.

Who Benefits Most

  • Debtors and homeowners with fixed-rate mortgages.
  • Workers in secure jobs less vulnerable to cuts.
  • Holders of foreign currencies, who gain from weaker domestic currency.

When Inflation Becomes Harmful

  • High inflation reduces purchasing power, risks layoffs, and raises borrowing costs, making big purchases like homes unaffordable. 
  • Fixed-income workers and investors in long-term bonds also lose, as returns fail to keep up with rising costs and interest rates.

Low Inflation and Government Finances

  • While real GDP growth rose to 7.8% in April–June 2025, nominal GDP growth fell to 8.8%, below the government’s budget assumption of 10.1%. 
  • Nominal GDP, influenced by inflation, is key for revenue projections and fiscal planning.

Budget Expectations vs Reality

  • The 2025–26 Budget assumed India’s nominal GDP would reach ₹357 lakh crore, with tax revenue expected to grow nearly 11%. 
  • However, persistently low inflation has weakened nominal GDP growth, straining revenue mobilisation.

Impact on Tax Collections

  • With WPI inflation averaging 0.1% and CPI inflation at 2.4% this fiscal, subdued price growth has slowed tax inflows. 
  • Between April–July, gross tax revenue rose just 1% year-on-year, while net tax revenue fell 7.5%.
  • Although low inflation benefits consumers, it weakens the government’s balance sheet
  • Sluggish nominal GDP growth is already impacting finances, making it difficult to meet FY26 budget targets.

Challenges in Meeting Nominal GDP Growth Targets

  • Nominal GDP growth often diverges from Budget assumptions. 
  • In the last 13 years, actual growth has fallen short nine times, though in three of the last four years, it exceeded expectations.

Revised Base and Budget Assumptions

  • The GDP for 2024–25 was revised upward by 2% to ₹331 lakh crore. 
  • This reduces the required growth for 2025–26 to 8% to meet the Budget’s target of ₹357 lakh crore.

Fiscal Implications

  • Achieving the nominal GDP projection is critical for maintaining fiscal indicators. 
  • The fiscal deficit target of 4.4% and debt-to-GDP ratio of 56.1% hinge on meeting this number, provided the deficit stays within estimates.

Concerns for FY26

  • Economists expect nominal GDP growth to fall below the Budget’s 10.1% estimate, with Morgan Stanley projecting just 8.3%. 
  • This implies continued slowdown after April–June’s 8.8% growth.
  • Upcoming reductions in Goods and Services Tax (GST) rates are expected to lower prices and inflation. 
  • While beneficial for consumers, this will likely further suppress nominal GDP growth.

Low Inflation: Causes and Concerns

  • Low inflation is not inherently negative; its impact depends on the cause. If driven by oversupply, it signals healthy demand, but if due to weak demand, it is worrisome.
  • An RBI study showed that in April–June, private companies’ sales grew 5.5%, while net profits surged 17.6%; in manufacturing, profits rose 27.7% against sales growth of just 5.3%, aided by lower global commodity prices.
  • Despite strong margins and cash reserves, corporate investment (capex) remains weak. 
  • Economists warn this indicates subdued demand rather than productivity-driven efficiency, raising concerns about India’s growth momentum.

Source: IE | IP

Low inflation in India FAQs

Q1: Why is low inflation in India a fiscal concern?

Ans: Low inflation slows nominal GDP growth, reducing tax revenue and making it harder for the government to meet Budget and fiscal deficit targets.

Q2: How does inflation affect nominal GDP growth?

Ans: Nominal GDP reflects total value of goods and services, influenced by prices. Lower inflation suppresses growth, even if real GDP production remains strong.

Q3: What was India’s nominal GDP growth in April–June 2025?

Ans: Nominal GDP growth fell to 8.8%, below the Budget assumption of 10.1%, despite real GDP growth rising to 7.8% during the same period.

Q4: How has low inflation affected tax revenues?

Ans: Between April–July 2025, gross tax revenue grew just 1% year-on-year, while net tax revenue fell 7.5%, reflecting sluggish revenue mobilisation.

Q5: Why is corporate investment weak despite high profits?

Ans: Though margins are strong due to lower global commodity prices, weak demand and low inflation have kept corporate capital expenditure subdued.

SC Ruling on Anand Marriage Act: Sikh Marriage Rights and Legal Debate

Anand Marriage Act

Anand Marriage Act Latest News

  • The Supreme Court has ordered 17 states and eight Union Territories to frame rules within four months for registering Sikh marriages under the Anand Marriage Act, 1909
  • Until then, Anand Karaj marriages must be registered under existing marriage laws. 
  • The ruling aims to ensure uniform legal recognition of Sikh marriages across India. 
  • However, critics argue that while the directive addresses procedural gaps, it does not fix deeper shortcomings in the Act itself, leaving broader issues unresolved.

The Anand Marriage Act and Its 2012 Amendment

  • Anand Karaj, meaning “blissful union,” is the Sikh marriage ceremony conducted before the Guru Granth Sahib. 
  • To solemnise the marriage, the couple walks around the Guru Granth Sahib four times, as hymns, known as laavan, are recited. 
    • The four chosen verses, composed by Guru Ram Das, the fourth Sikh Guru, outline the spiritual journey of a married couple.
  • To secure distinct legal recognition for this practice, the Anand Marriage Act, 1909 was enacted, validating all marriages solemnised through Anand Karaj and distinguishing them from Hindu rituals. 
  • However, the original Act lacked provisions for registration. 
  • This gap was filled over a century later by the Anand Marriage (Amendment) Act, 2012, which inserted Section 6 mandating states to frame rules for registering such marriages. 
  • Once registered under this Act, couples no longer need to register under any other marriage law.

State Inaction and Supreme Court’s Intervention

  • Despite the 2012 Amendment mandating registration rules for Anand Karaj marriages, most states and Union Territories failed to act, denying Sikh couples legal certificates essential for residence, maintenance, inheritance, and succession. 
  • Highlighting this inaction, petitions were filed in the Supreme Court in 2022, arguing that uneven access to rights disenfranchised the community. 
  • As a result, the Court directed all states and UTs to frame rules within four months, stressing that in a secular framework, Anand Karaj marriages must be registered on par with others. 
  • It placed a positive duty on states to create workable registration systems and clarified that applications cannot be refused merely because rules have not been notified.

The Ongoing Debate on Sikh Marriage Rights

  • Despite legal recognition through the Anand Marriage Act, 1909 and its 2012 Amendment, most Sikh couples still register marriages under the Hindu Marriage Act, 1955, which also governs divorce and disputes. 
  • The Anand Act lacks provisions for divorce or matrimonial issues, forcing Sikhs to rely on Hindu law, undermining their distinct religious identity. 
  • Community leaders and scholars argue that Sikhs need a comprehensive marriage law similar to those for Muslims and Christians. 
  • Critics highlight that the Anand Act, barely a page long, is symbolic rather than substantive, offering limited rights and failing to fully recognise Sikhs as a separate community.

Importance of Marriage Registration

  • The Supreme Court stressed that marriage registration is essential for equality, civil administration, and legal proof of status in matters such as residence, maintenance, inheritance, insurance, succession, and monogamy. 
  • It also safeguards the rights of women and children. 
  • Emphasising uniformity, the bench stated that in a secular framework, marriages solemnised by Anand Karaj must be recorded and certified on the same footing as other marriages to ensure both religious respect and civic equality.

Source: IE | MC

Anand Marriage Act FAQs

Q1: What is the Anand Marriage Act?

Ans: The Anand Marriage Act, 1909, legally recognised Sikh Anand Karaj marriages, later amended in 2012 to mandate states to frame registration rules.

Q2: What did the Supreme Court rule recently?

Ans: The SC ordered 17 states and eight UTs to frame registration rules within four months, ensuring Sikh couples can register marriages under their faith.

Q3: Why is marriage registration important?

Ans: Marriage registration ensures proof for residence, inheritance, maintenance, insurance, and succession, safeguarding women’s and children’s legal rights.

Q4: What shortcomings exist in the Anand Marriage Act?

Ans: The Act lacks provisions for divorce or disputes, forcing Sikhs to rely on the Hindu Marriage Act, undermining distinct religious identity.

Q5: Why do critics call the Act symbolic?

Ans: At just a page long, the Act offers limited rights. Leaders argue Sikhs need a comprehensive marriage law similar to those for Muslims and Christians.

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