What changes has the Union Government recently introduced in the domain of Centre-State relations ? Suggest measures to be adopted to build the trust between the Centre and the States and for strengthening federalism.
Approach · directive: “what / suggest”
What it asks · Identify recent Union-level changes (fiscal, institutional, legislative, administrative) in Centre–state relations, then suggest trust-building measures.
The question has 2 parts — answer each
- What changes: recent Union-level changes in Centre–state relations — fiscal, institutional, legislative and administrative
- Suggest measures: specific steps to build Centre–state trust and strengthen federalism
Open with · India's 'indestructible Union of destructible States' has seen major shifts in the last decade — from GST and NITI Aayog to disputes over Governors and central agencies.
Cover
- Fiscal: GST (101st Amendment, 2016) pooled indirect taxes under the GST Council; Finance Commissions raised devolution to 42% and then 41%.
- Fiscal friction: growing cesses and surcharges outside the divisible pool; end of GST compensation in 2022; limits on state borrowing.
- Institutional: NITI Aayog replaced the Planning Commission (2015), promoting cooperative and competitive federalism.
- Legislative and administrative: J&K reorganised into Union Territories (2019); amendments to the Delhi (GNCTD) law; BSF jurisdiction widened in border states (2021).
- Flashpoints: Governors' delays on state bills, withdrawal of general consent to the CBI, disputes over central agencies.
- Measures: regular meetings of the Inter-State Council, Sarkaria and Punchhi recommendations on Governors, consultation before laws on Concurrent List subjects.
- Fiscal trust: share cess revenue, predictable transfers, a consensus-based GST Council, and more untied funds to states.
Close with · Federalism is strengthened less by constitutional text than by conventions of consultation — regular, institutional dialogue can rebuild trust.
Add value (verified)
- Article 263 already provides a standing forum for Centre–state dialogue that can be used far more. The Constitution of India (as on 1 May 2024), Article 263 — Legislative Department ↗“If at any time it appears to the President that the public interests would be served by the establishment of a Council”
Question: UPSC's CS (Main) 2024, GS Paper II — paper ↗. Approach: Minimalist IAS, checked 30 Sept 2026 (how we verify) — UPSC publishes no model answers. ·
Model answer · 320 words (UPSC limit 250) · Minimalist IAS
India is an 'indestructible Union of destructible States', and the last decade has reshaped how the two levels deal with each other — from GST and NITI Aayog to disputes over Governors, central agencies and fiscal space.
Recent changes
- Fiscal: the 101st Amendment (2016) pooled indirect taxes under a GST Council in which the Centre holds one-third of the votes; the 14th and 15th Finance Commissions raised the states' share of central taxes to 42% and then 41%.
- Fiscal friction: cesses and surcharges outside the divisible pool have grown; GST compensation ended in 2022; conditions on state borrowing have tightened.
- Institutional: NITI Aayog replaced the Planning Commission (2015), ending discretionary plan grants and promoting 'cooperative and competitive federalism' through indices and rankings.
- Legislative and administrative: reorganisation of Jammu and Kashmir into Union Territories (2019); amendments to the Delhi (GNCTD) law enlarging the Lieutenant Governor's role; BSF jurisdiction widened in border states (2021); centrally sponsored schemes with fixed state shares.
- Flashpoints: Governors sitting on state bills, states withdrawing general consent to the CBI, and disputes over central agencies and all-India service postings.
Measures to rebuild trust
- Revive the Inter-State Council (Article 263) with fixed annual meetings and a standing secretariat; use zonal councils for regional issues.
- Governors: appoint after consulting the Chief Minister and set a time limit for assent to bills, as the Sarkaria and Punchhi Commissions recommended.
- Fiscal: cap or share cesses and surcharges, make transfers predictable, provide compensation-type support in shocks, and give states more untied funds.
- Legislation: consult states before laws on Concurrent List subjects and respect state competence over police, land and local government.
- Institutions: a consensus-driven GST Council, a clear protocol for central agencies operating in states, and stronger local governments to deepen federalism below the state.
Federalism is strengthened less by constitutional text than by conventions of consultation; regular, institutional dialogue and fair fiscal sharing can turn a decade of friction into cooperative trust.
Written by Minimalist IAS from facts checked at source (how we verify) — a little fuller than exam length, so every part of the question is covered; in the hall, keep the structure and trim the detail. UPSC publishes no model answers: compare your structure and coverage with this, then write your own.