Minimalist IAS
2024 GS Paper II

UPSC CSE (Main) 2024 · GS Paper II · Question 13

What changes has the Union Government recently introduced in the domain of Centre-State relations ? Suggest…

Syllabus line: Federalism & devolution — “Functions and responsibilities of the Union and the States, issues and challenges pertaining to the federal structure, devolution of powers and finances up to local levels and challenges therein.”

GS Paper II 2024 · Q13

15 marks · 250 words Federalism & devolution

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

  1. What changes: recent Union-level changes in Centre–state relations — fiscal, institutional, legislative and administrative
  2. 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)

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.

Also asked on this syllabus line

All questions on Federalism & devolution →

Build the base: Prelims PYQs on this