Centre-State Relation - Questlink IAS

Q1. Centre-State relations in India are dependent upon –U.P.P.C.S. (Pre) 2009

1. Constitutional provisions

2. Conventions and practices

3. Judicial interpretations

4. Mechanisms for dialogue

Select the correct answer from the codes given below: Code :

(a) 1 and 2

(b) 1, 2 and 3

(d) All the four

Ans. (d)

Exp:

Centre-State relations in India are primarily based on constitutional provisions, such as division of powers, legislative relations, administrative relations and financial relations. Hence, statement (1) is correct.
They are also influenced by conventions and practices, such as consultation, cooperation and federal political traditions. Hence, statement (2) is correct.
Judicial interpretations by the Supreme Court also shape Centre-State relations, especially in matters like federalism, President’s Rule and distribution of powers. Hence, statement (3) is correct.
Mechanisms for dialogue, such as Inter-State Council, Zonal Councils, NITI Aayog, and other consultative bodies, also help in Centre-State coordination. Hence, statement (4) is correct.
Therefore, the correct answer is (d).

Q2. A Federal policy involves – U.P.P.C.S. (Mains) 2010

1. Relations between Union & State

2. Relations among States

3. Mechanism for cooperation

4. Mechanism for solving disputes

Select your correct answer from the code given below:

Code :

(a) 1, 2, 3 and 4

(b) Only 1, 2 and 3

(d) Only 2, 3 and 4

Ans. (a)

A federal polity involves relations between the Union and the States, because powers and responsibilities are divided between both levels of government. Hence, statement (1) is correct.
It also includes relations among States, as States need coordination on boundaries, water, trade, migration, law and order, etc. Hence, statement (2) is correct.
Federalism requires mechanisms for cooperation, such as Inter-State Council, Zonal Councils and other consultative bodies. Hence, statement (3) is correct.
It also needs mechanisms for resolving disputes, such as judicial review by the Supreme Court and constitutional provisions for inter-state disputes. Hence, statement (4) is correct.
Therefore, the correct answer is (a).

Q3. In which part of the Indian Constitution, legislative relations between Centre and States are given? U.P.P.C.S. (Spl) (Mains) 2004 U.P.R.O./A.R.O. (Pre) 2014

(a) Part X

(b) Part XI

(d) Part XIII

Ans. (b)

Exp:

The legislative relations between the Centre and States are given in Part XI of the Constitution of India.
Hence, option (b) is correct.
Part XI deals with Relations between the Union and the States and includes Articles 245 to 263.
Legislative relations are specifically covered under Articles 245 to 255, which deal with the extent of laws, distribution of legislative powers, and related matters.
The legislative subjects are distributed in the Seventh Schedule into three lists:
Union List
State List
Concurrent List
Therefore, the correct answer is (b).

Q4. Indian Constitution presents three lists for the distribution of power between centre and states. Which two Articles regulate that distribution? U.P.U.D.A./L.D.A. (Pre) 2001

(a) Article 4 and 5

(b) Article 56 and 57

(d) Article 245 and 246

Ans. (d)

The distribution of legislative powers between the Centre and States is mainly regulated by Article 245 and Article 246 of the Indian Constitution. Hence, option (d) is correct.
Article 245 deals with the extent of laws made by Parliament and State Legislatures, i.e., where their laws can operate.
Article 246 deals with the subject-wise distribution of legislative powers through the three lists in the Seventh Schedule:
Union List — Parliament’s exclusive power
State List — State Legislature’s exclusive power
Concurrent List — both Parliament and State Legislature
Parliament also has power to make laws for Union Territories even on matters in the State List.
Therefore, the correct answer is (d).

Q5. The distribution of legislative powers between the Centre and the States in the Constitution is given in – U.P.P.C.S. (Pre) 1993 U.P. Lower Sub. (Pre) 2008

(a) Sixth Schedule

(b) Seventh Schedule

(d) Ninth Schedule

Ans. (b)

Exp:

As per Article 246 of the Constitution of India, legislative powers between the Union and States are distributed on the basis of the three lists in the Seventh Schedule.
Hence, the Seventh Schedule is the basis of distribution.
Article 246 clearly provides:
Union List → exclusive power of Parliament
State List → exclusive power of State Legislatures
Concurrent List → both Parliament and States can legislate
It also gives residuary power to Parliament under Article 246(4) for Union Territories or matters not covered in the State List.
Therefore, the correct answer is (b).

Q6. A resolution passed by the Rajya Sabha under Article 249 of the constitution empowering Parliament to legislate on a state subject in national interest remains in force for a period. U.P.P.C.S. (Pre) 2017

(a) Not exceeding six months

(b) Not exceeding two years

(d) of unlimited time

Ans. (c)

As per Article 249 of the Constitution of India, when the Rajya Sabha passes a resolution by a special majority (2/3rd members present and voting), Parliament can legislate on a State List subject in national interest.
Such a resolution remains in force for a period not exceeding one year as specified in the resolution.
It can be renewed for further periods of one year each by passing a fresh resolution in the same manner.
Therefore, the correct answer is (c).

Q7. Which Article among the following says that Indian Constitution provisions about interstate relation? U.P. Lower Sub. (Pre) 2009

(a) Article 262

(b) Article 263

(d) Article 265

Ans. (b)

Exp:

As per Article 263 of the Constitution of India, the President may establish an Inter-State Council to promote coordination between States and between the Centre and States.
This Council is responsible for inquiring into and advising on disputes between States, and for discussing subjects of common interest.
It also makes recommendations for better coordination of policy and action on inter-State matters.
Therefore, Article 263 specifically deals with inter-State relations and coordination mechanisms.
Other Provisions:
Article 262: Parliament may provide for adjudication of inter-State river water disputes and may bar courts (including Supreme Court) from jurisdiction over them.
Article 264: Defines “Finance Commission” as constituted under Article 280.
Article 265: No tax can be levied or collected except by authority of law.
Hence, the correct answer is (b).

Q8. Who among the following is empowered to establish the Inter-State council? U.P.P.C.S. (Pre) 2017

(a) Parliament

(b) President

(d) Prime Minister

Ans. (b)

Exp:

As per Article 263 of the Constitution of India, the President is empowered to establish an Inter-State Council by Presidential Order whenever it appears necessary for public interest.
The Inter-State Council is a constitutional advisory body meant to promote coordination between States and between the Centre and States in matters of common interest.
The Council was first constituted in 1990 based on Sarkaria Commission recommendations to strengthen cooperative federalism.
Composition:
Prime Minister – Chairperson
Chief Ministers of all States – Members
Chief Ministers of Union Territories having Legislative Assemblies – Members
Administrators of Union Territories without Legislative Assemblies – Members
Six Union Cabinet Ministers nominated by the Prime Minister – Members
The Council may also include permanent invitees (Union Ministers) as nominated by the Prime Minister.
The President can define its duties, organisation, and procedure under Article 263.
It deals with:
Inter-State disputes
Common policy issues
Coordination of administration and planning
Therefore, the correct answer is (b).

Q9. Which of the following is/are extra-constitutional and extra-legal device(s) for securing cooperation and coordination between the States in India? I.A.S. (Pre) 1995

1. The National Development Council

2. The Governor’s Conference

3. Zonal Councils

4. Inter-State Council

Code :

(a) 1 and 2 .

(b) 1, 3 and 4

(d) 4 only

Ans. (a)

Exp:

Extra-constitutional and extra-legal devices are those institutions which are not provided in the Constitution of India but are created for coordination between the Centre and the States.
The National Development Council (NDC) was established in 1952 as an apex planning body to ensure cooperation between the Union and States. It is not mentioned in the Constitution. Hence, it is extra-constitutional.
The Governor’s Conference was first held in 1949 at Rashtrapati Bhavan, presided over by C. Rajagopalachari (then Governor-General of India). It is an informal executive arrangement and has no constitutional backing. Hence, it is extra-constitutional.
Zonal Councils are statutory bodies, created under the States Reorganisation Act, 1956, and therefore are not extra-constitutional.
The Inter-State Council, though advisory, is a constitutional body under Article 263 of the Constitution of India, established by Presidential Order in 1990 based on the Sarkaria Commission recommendation. Hence, it is not extra-constitutional.
Therefore, the correct answer is (a).

Q10. The regional councils are constituted by– U.P.P.C.S. (Pre) 2000

(a) Constitution

(b) Parliamentary Laws

(d) National Development Council

Ans. (b)

Exp:

The idea of Zonal Councils (regional councils) was proposed by Prime Minister Pandit Jawaharlal Nehru in 1956 during the debate on the States Reorganisation Commission Report to promote cooperative working and national integration.
Accordingly, five Zonal Councils were created under Part III of the States Reorganisation Act, 1956, making them statutory bodies established by Parliamentary law. Hence, they are constituted by Parliamentary laws.
These Zonal Councils are: Northern, Central, Eastern, Western and Southern Zonal Councils, designed to resolve inter-State disputes, promote coordination and reduce regional tensions.
Their composition includes Union Home Minister (Chairman), Chief Ministers of States (Vice-Chairpersons by rotation), State Ministers, and advisors from Niti Aayog/officials.
In addition, the North Eastern Council (NEC) was created separately under the North Eastern Council Act, 1971 (later amended in 2002 to include Sikkim). It deals specifically with the special developmental and administrative problems of the North Eastern States, which are not included in the Zonal Councils.
Therefore, the correct answer is (b).

Q11. Which one of the following is not a feature of a zonal council? U.P.P.C.S. (Pre) 2017

(a) It is a constitutional body

(b) Five Zonal Councils have set up under the State Reorganisation Act, 1956

(d) It is an Advisory body

Ans. (a)

Exp:

Zonal Councils were proposed by Prime Minister Jawaharlal Nehru in 1956 during the discussion of the States Reorganisation Commission (Fazal Ali Commission, 1953) report to promote cooperative federalism and reduce inter-State tensions.
As per Sections 15–22 of the States Reorganisation Act, 1956, five Zonal Councils were created, making them statutory bodies (not constitutional bodies).
Hence, statement (a) is incorrect because Zonal Councils are not constitutional bodies.
The five Zonal Councils are:
Northern Zonal Council
Central Zonal Council
Eastern Zonal Council
Western Zonal Council
Southern Zonal Council. Hence, statement (b) is also correct.
These Zonal Councils are advisory in nature, meant to facilitate coordination and cooperation between States and the Centre. Hence, statement (d) is correct.
Chandigarh, though not a State, is included in the Northern Zonal Council, along with Haryana, Himachal Pradesh, Punjab, Rajasthan, Delhi, and Jammu & Kashmir. Hence, statement (c) is correct.
In addition, the North Eastern Council (NEC) was created separately under the North Eastern Council Act, 1972, and includes North Eastern States (and Sikkim since 2002 amendment), dealing with their special developmental needs.
Therefore, the correct answer is (a).

Q12. The North Eastern Council (NEC) was established by the North Eastern Council Act, 1971. Subsequent to the amendment of NEC Act in 2002, the Council comprises which of the following members? I.A.S. (Pre) 2024

1. Governor of the Constituent State

2. Chief Minister of the Constituent State

3. Three Members to be nominated by the President of India

4. The Home Minister of India

Select the correct answer using the code given below:

(a) 1, 2 and 3 only

(b) 1, 3 and 4 only

(d) 1, 2, 3 and 4

Ans. (d)

Exp:

As per the North Eastern Council (NEC) Act, 1971 (as amended in 2002), the composition of the North Eastern Council is clearly defined. Hence, the correct structure is based on statutory provisions, not the Constitution.
The NEC consists of:
Governors of the constituent States
Chief Ministers of the constituent States
Three members nominated by the President of India. Hence, statements (1), (2), and (3) are correct.
After later executive notifications, the Union Home Minister functions as the ex-officio Chairman of NEC, though this is not part of the original statutory text of the 2002 amendment but a current arrangement under Presidential notification.
Hence, statement (4) is also correct in present practice.
Therefore, the correct answer is (d).

Q13. Given below are two statements, one is labelled as Assertion (A) and the other as Reason (R). U.P. P.C.S (Pre) 2025

Assertion (A): The concept of National Integration involves political, economic, social, cultural and psychological dimensions and inter-relation between them.

Reason (R): The National Integration Council was constituted in 1961 on the principle of ‘Unity in Diversity’.

Select the correct answer from the code given below :

Code :

(a) Both (A) and (R) are true, but (R) is not the correct explanation of (A).

(b) (A) is false, but (R) is true.

(d) Both (A) and (R) are true and (R) is the correct explanation of (A).

Ans. (a)

Exp:

The concept of National Integration involves political, economic, social, cultural and psychological dimensions and their interrelationship, aiming at unity and solidarity of the nation. Hence, Assertion (A) is true.
The National Integration Council (NIC) was set up in 1961–62 after the National Integration Conference convened by Prime Minister Jawaharlal Nehru to address issues like communalism, casteism, regionalism, and linguism, and it is based on the principle of “Unity in Diversity”. Hence, Reason (R) is also true.
However, the formation of NIC on the principle of “Unity in Diversity” does not explain the conceptual multidimensional nature of National Integration (political, economic, social, cultural, psychological). It only reflects the philosophy behind the body, not the reason for the assertion. Hence, (R) is not the correct explanation of (A).
Therefore, the correct answer is (a).

Q14. Which of the following is not matched properly? U.P.P.C.S. (Spl) (Mains) 2004

(a) Union Parliament’s power of adjudication in Inter State water dispute - Article 262 of the Constitution

(b) Inter-State Water Dispute Act, 1956

(d) National Water Policy,1987

Ans. (c)

Article 262 of the Constitution of India empowers Parliament to adjudicate disputes relating to inter-State rivers and river valleys. Hence, statement (a) is correctly matched.
The Inter-State River Water Disputes Act, 1956 is correctly mentioned as a Parliamentary law providing for adjudication of inter-State water disputes. Hence, statement (b) is correctly matched.
The River Boards Act is wrongly mentioned as 1970. In reality, the correct Act is the River Boards Act, 1956, not 1970. Hence, statement (c) is not correctly matched.
The National Water Policy was first adopted in 1987 by the Ministry of Water Resources, Government of India. Hence, statement (d) is correctly matched.
Therefore, the correct answer is (c).

Q15. Sarkaria Commission was set up to review – U.P.P.C.S. (Mains) 2006 U.P.P.C.S. (Pre) 2008, 2016

(a) The relations between the President and the Prime Minister

(b) The relations between the Legislature and the Executive

(d) The relations between the Union and the States

Ans. (d)

Exp:

The Sarkaria Commission was constituted in 1983 under the chairmanship of Justice R.S. Sarkaria, with Shri B. Sivaraman and Dr. S.R. Sen as its members, to review the working of the existing arrangements between the Union and the States.
As per its Terms of Reference, the Commission was required to examine the distribution of powers, functions and responsibilities between the Union and the States in all spheres.
It was set up in the context of improving cooperative federalism and administrative coordination in a changing socio-economic scenario.
The Commission submitted its report in 1988, making key recommendations on strengthening Union–State relations, including reforms related to the Inter-State Council under Article 263 of the Constitution of India.
Therefore, the correct answer is (d).

Q16. Given below are two statements one is labelled as Assertion (A) and the other is labelled as Reason (R).

Assertion (A) : Sarkaria Commission recommended that Article 356 should be sparingly used.

Reason (R) : The political parties that came to form the Government at the Centre misused Article 356.

Code:

(a) (R) is true, but (A) is false.

(b) Both (A) and (R) are true, but (R) is not the correct explanation of (A).

(d) (A) is true, but (R) is false.

Ans: (c)

Exp:

The Sarkaria Commission was constituted in 1983 under the chairmanship of Justice R.S. Sarkaria (with members B. Sivaraman and Dr. S.R. Sen) to examine Centre–State relations. It recommended that Article 356 should be used only in rare and exceptional circumstances, not as a routine political tool.
Hence, Assertion (A) is true.
The Commission also clearly observed that Article 356 had been misused by the Central Government and ruling parties on several occasions for political purposes, often without exhausting other constitutional alternatives.
Hence, Reason (R) is also true.
The misuse of Article 356 by ruling parties at the Centre is precisely the reason why the Commission strongly recommended its restrained and sparing use, linking the observation directly to its recommendation. Hence, (R) is the correct explanation of (A).
Therefore, the correct answer is (c).

Q17. With reference to India, consider the following : I.A.S. (Pre) 2025

I. The Inter-State Council

II. The National Security Council

III. Zonal Councils

How many of the above were established as per the provisions of the Constitution of India?

(a) Only one

(b) Only two

(d) None

Ans. (a)

Exp:

The Inter-State Council is established under Article 263 of the Constitution of India, which empowers the President to set up such a body for coordination between States and the Centre. Hence, it is constitutionally established.
The Zonal Councils are statutory bodies, created under the States Reorganisation Act, 1956, and not mentioned in the Constitution. Hence, they are not constitutionally established.
The National Security Council (NSC) was created in 1998 by an executive decision of the Government of India after nuclear tests, and has no constitutional backing. Hence, it is not constitutionally established.
Therefore, among the three, only the Inter-State Council is established under the Constitution.
Hence, the correct answer is (a).

Q18. Which one of the following is not related to Union-State relations in India? U.P.P.C.S. (Pre) 2015

(a) Sarkaria Commission

(b) Rajmannar Committee

(d) Punchhi Commission

Ans. (c)

Exp:

The Sarkaria Commission (1983) and the Punchhi Commission (2007) were both constituted to examine Centre–State relations, including legislative, administrative and financial relations between the Union and States. Hence, they are related to Union–State relations.
The Rajmannar Committee (1969) was set up by the Tamil Nadu Government to study Centre–State relations and recommended greater autonomy and devolution of powers to States. Hence, it is also related to Union–State relations.
The Indrajit Gupta Committee (1998) was constituted to examine state funding of elections, not Centre–State constitutional relations. Its focus was electoral reforms and not federal relations.
Therefore, the committee not related to Union–State relations is Indrajit Gupta Committee.
Hence, the correct answer is (c).

Q19. Consider the following statements - I.A.S. (Pre) 2003

In India, stamp duty on financial goods deals are -

1. imposed and collected by state government

2. regulated by the union government

Which of the following is/are correct?

(a) only 1

(b) only 2

(d) none of these

Ans. (d)

Exp:

As per Article 268 of the Constitution of India, certain stamp duties are levied by the Union Government but collected and appropriated by the States (except in Union Territories). Hence, statement 1 is incorrect.
Stamp duty matters, including rates and administration, fall under the State List (Entry 63, Seventh Schedule), not under Union regulation. Therefore, it is not regulated by the Union Government. Hence, statement 2 is incorrect.
Therefore the correct answer is (d).

Q20. Consider the following statementsIn India taxes on transactions in Stock-Exchanges and Futures Markets are – U.P.P.C.S. (Mains) 2006

1. Levied by Union.

2. Collected by the State Government.

Code :

(a) Only 1

(b) Only 2

(d) Neither 1 nor 2

Ans. (a)

Exp:

As per Entry 48 of List I (Union List) in the Seventh Schedule of the Constitution of India, “Stock exchanges and futures markets” fall under Union legislative control. Therefore, taxes related to transactions in stock exchanges and futures markets are levied by the Union Government.
Under the scheme of Article 270, most Union List taxes are levied and collected by the Union Government, and then distributed between the Union and the States as per Finance Commission recommendations.
Hence, the correct answer is (a).

Q21. Under constitutional provision of tax assignment in India, which of the following is a tax exclusively imposed and collected by the states?

(a) Income Tax

(b) Land Revenue

(d) GST

Ans. (b)

Under the scheme of tax distribution in the Constitution of India, taxes are divided among the Union and the States through the Seventh Schedule of the Constitution of India.
Land Revenue falls under the State List (Entry 45), meaning it is exclusively imposed and collected by State Governments.
Income Tax and Corporation Tax are Union taxes (List I, Entry 82 and 85), and GST is a concurrent-type levy administered jointly by Centre and States under constitutional amendments.
Therefore, the correct answer is (b).

Q22. Provision for Discretionary Grant which may be given by Central government to States is given under which Article of the Constitution?

(a) Article 275

(b) Article 281

(d) Article 228

Ans. (c)

Exp:

Article 282 of the Constitution of India provides that the Union or a State may make grants for any public purpose, even if it is not within its legislative competence.
This provision enables the Central Government to give discretionary grants to States for public purposes as part of fiscal federalism.
Therefore, discretionary grants by the Centre to States are covered under Article 282.
Hence, the correct answer is (c).

Q23. Is a State of the Indian Union empowered under the Constitution to take foreign loans directly? U.P.P.C.S. (Mains) 2012

(a) Yes

(b) No

(d) Yes, but only with the permission of the Reserve Bank of India

Ans. (b)

Exp:

Under Article 293 of the Constitution of India, a State can borrow only within the territory of India on the security of its Consolidated Fund, subject to conditions laid down by its Legislature.
There is no constitutional provision permitting States to raise foreign loans directly. External borrowing is within the domain of the Union Government.
Therefore, a State of the Indian Union is not empowered to take foreign loans directly under the Constitution.
Hence, the correct answer is (b).

Q24. Agriculture Income Tax is assigned to the State Government by- I.A.S. (Pre) 1995

(a) The Finance Commission

(b) The National Development Council

(d) The Constitution of India

Ans. (d)

Exp:

Under the Constitution of India, agricultural income tax is not assigned by any commission or body, but by the constitutional scheme of distribution of taxation powers under the Seventh Schedule of the Constitution of India.
Agricultural income is placed in the State List (Entry 46, State List), which means States have exclusive power to levy tax on agricultural income.
Therefore, the assignment of agricultural income tax to State Governments is directly provided by the Constitution itself, not by the Finance Commission, National Development Council, or Inter-State Council.
Hence, the correct answer is (d).

Q25. Main agency to resolve the fiscal disputes between the Centre and States is – U.P.P.C.S. (Pre) 1995

(a) Supreme Court

(b) Law Minister

(d) Finance Commission

Ans. (a)

Exp:

Fiscal disputes between the Centre and States, when they become legal disputes involving interpretation of rights and constitutional provisions, fall under the original jurisdiction of the Supreme Court under Article 131 of the Constitution of India.
Article 131 empowers the Supreme Court to adjudicate disputes between:
Centre vs States
States vs States
Centre and States on one side vs other States
Hence, the correct answer is (a).

Q26. Under which of the following taxes the total amount payable by an individual is limited by the Constitution? UP.P.C.S. (Mains) 2004 U.P.P.C.S. (Mains) 2002

(a) Corporation tax

(b) Estate Duty

(d) Tax on profession, trade, and callings

Ans. (d)

Exp:

Under Article 276 of the Constitution of India, States are empowered to levy tax on professions, trades, callings and employments, but this power is subject to a constitutional limit on the total amount that can be collected from an individual.
Article 276(2) clearly provides that the total tax payable by any one person under this head cannot exceed ₹2,500 per annum (as per constitutional limit, subject to amendments by State laws within this ceiling).
This is a unique constitutional restriction placed only on this category of tax.
Therefore, the tax on professions, trades, and callings is the one where the total payable by an individual is constitutionally limited.
Hence, the correct answer is (d).

Q27. Freedom of inter-state trade and commerce has been regulated by the Indian Constitution under Article:

(a) 19(1)(d-e)

(b) 301

(d) All of the above

Ans. (c)

Exp:

Article 301 of the Constitution of India declares that trade, commerce and intercourse throughout the territory of India shall be free, subject to the other provisions of Part XIII.
However, this freedom is not absolute and is regulated by the provisions contained in Articles 301 to 307, which collectively deal with inter-State trade and commerce, restrictions, and regulatory powers of Parliament and States.
Article 301 lays down the principle of freedom, while Articles 302–307 provide limitations, exceptions, and regulatory mechanisms.
Therefore, the freedom of inter-State trade and commerce is regulated under Articles 301 to 307.
Other Provisions:
Article 302: Parliament may impose restrictions on inter-State or intra-State trade, commerce and intercourse in public interest.
Article 303: Neither Parliament nor States can discriminate between States in trade, except in case of scarcity of goods.
Article 304: State Legislatures may impose taxes and reasonable restrictions on trade subject to non-discrimination and prior Presidential sanction.
Article 305: Existing laws and State monopoly laws remain valid unless modified by the President or Parliament as provided.
Article 306: (Omitted) Earlier provisions allowing certain Part B States to impose trade restrictions were repealed.
Article 307: Parliament may establish an authority to implement and regulate provisions relating to inter-State trade and commerce.
Hence, the correct answer is (c).

Q28. Article 300 of the Indian Constitution deals with 67th B.P.S.C. (Pre), 2022

(a) suits and proceedings

(b) government contracts

(d) restrictions on trade and commerce

(e) None of the above/More than one of the above

Ans. (a)

Exp:

Article 300 of the Constitution of India provides that the Government of India may sue or be sued as the Union of India, and a State may sue or be sued as a State, along with provisions regarding continuation of pending legal proceedings after commencement of the Constitution.
This Article clearly deals with the legal capacity of the Union and States in civil suits and legal proceedings.
It does not deal with government contracts, the Attorney General, or trade and commerce.
Hence, the correct answer is (a).