<P> The appointment of Governor of States in India is vested with the President but only on the advice of the Union Government . The governors of states are generally not residents of the state . </P> <P> In the case of a breakdown of constitutional machinery in a state, Article 356 brings about state emergency which dissolves the state government and results in President's rule during which the Union Government can make laws for a state . There is no emergency at the centre which can dissolve the Union government unlike Government of India Act 1935 . Misuse of Article 356 was rampant in the decades following the adoption of the new constitution especially during the prime ministry of Indira Gandhi . In 1991, Supreme court passed a landmark judgement which acknowledged misuse of the article and laid down principles for the Union government to follow before the state emergency can be invoked . </P> <P> The Lieutenant Governors of Union Territories of India are designed as administrators and are once again appointed by the President on the advice of the Union government . These Lieutenant Governors can override policies made by the local government . </P> <P> States are at liberty to manage their finances as long it is not leading to financial emergency per Article 360 . Instead GoI is trying to impose uniform taxation laws throughout India and trying to take over of tax collection mechanism of states without regards for the positive and negative inherent aspects of each state which are to be addressed by each state from time to time . Recently Supreme court upheld the constitutional right of states to impose Entry Tax which is against the principle of GST . </P>

How has the power been divided between the central and the state government in india