Q13 · UPSC Civil Services Mains 2024 · GS II · 15 marks · 2 min read

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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.

Topic: Federal Structure and Devolution. Syllabus: 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. Same official PYQ from year-wise 2024 and Federal Structure and Devolution.

Revision summary

Recent Centre–State shifts: GST compensation end, cess and surcharge, centrally sponsored schemes, NITI replacing plan bargaining, Governor delays on Bills, Article 370, simultaneous-election talk. The Supreme Court in the Punjab Bills case limited pocket-veto use of Articles 200–201. GST Council remains a federal bargain; CBI consent and cadre rules remain sore. Sarkaria and Punchhi asked for an Inter-State Council, consultation, less cess, and a non-partisan Governor. Trust is procedural — calendars, terms of reference, devolution — not a communiqué. Cooperative federalism is minutes and transfers, not a chapter in a brochure.

Model answer

Introduction

Indian federalism is bargaining inside a strong Union. In recent years the Union has used money, Governors and framework laws more loudly. States have used the Supreme Court and the GST Council. The question asks what changed, and how to put trust back into a structure that still has Article 3 and a single Constitution.

Body

Fiscal recasting

The purse has moved faster than the Seventh Schedule.

  • Peg: The five-year GST compensation guarantee ran out; the Union leaned more on cess and surcharge, which do not enter the divisible pool.
  • Peg: Centrally sponsored schemes still steer a large part of State budgets; the Fifteenth Finance Commission used 2011 population figures and attached conditions to some grants.
  • Peg: NITI Aayog replaced the Planning Commission: more a think-tank, less a table at which States bargained plan money.

Institutional and administrative recasting

Offices that were meant to be a buckle have been read in State capitals as a bit.

  • Peg: Governors in several Opposition-ruled States sat on Bills; in State of Punjab the Court read Articles 200 and 201 as not allowing a pocket veto.
  • Peg: Union terms of reference to Finance Commissions, and the Kovind simultaneous-election design, are read as an attempt to set the political calendar from Delhi.
  • Peg: The 2019 reorganisation of Jammu and Kashmir under Article 370 was a federal shock of another kind.
  • Peg: Several States withdrew general consent for the CBI; All India Services cadre rules and “one nation” platforms for ration and identity leave States as implementers more than designers.

Measures for trust

Sarkaria and Punchhi already wrote the homework.

  • Peg: A living Inter-State Council (Article 263), consultation before Bills that eat into the State list, and Governors who are not extra Chief Ministers.
  • Peg: A Finance Commission whose terms of reference are not a Union manifesto; less cess, more devolution; centrally sponsored schemes that States can opt and adapt.
  • Peg: Opposition-ruled States in the room — GST rate talks, service postings, disaster money — without treating dissent as anti-national.
  • Peg: Codify Bill timelines as a convention so the Union does not need a mandamus to forward a file; let the GST Council’s dispute mechanism work before the Court is the first stop.

Flow diagram

flowchart TD
  U[Union] --> M[Cess CSS NITI]
  U --> G[Governor Bills]
  S[States] --> SC[Supreme Court]
  S --> GST[GST Council]
  ISC[Inter-State Council] --> T[Trust]
  M --> T

Conclusion

Recent years tightened Union money and gubernatorial delay, then the Court pushed back on Bills. Trust will return through Inter-State Council habit, cleaner devolution and Governors who sign — not through another slogan about cooperation.

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More from this topic

Q14 · UPSC Mains 2025 · GS II · 15 marks

Examine the evolving pattern of Centre-State financial relations in the context of planned development in India. How far have the recent reforms impacted the fiscal federalism in India?

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Finance Commissions devolve taxes; Planning Commission Plan grants created a discretionary second channel. Sarkaria and Punchhi criticised that discretion. NITI Aayog ended Plan cheques; 14th FC raised the States’ share of the divisible pool to 42%. GST shares tax but limits State rate power; cesses outside the pool and CSS keep Union leverage. Article 293 borrowing conditions remain a hard federal tool.

Q15 · UPSC Mains 2023 · GS II · 15 marks

Explain the significance of the 101st Constitutional Amendment Act. To what extent does it reflect the accommodative spirit of federalism?

Federal Structure and Devolution

The 101st Constitutional Amendment, 2016, introduced GST through Articles 246A, 269A and 279A. It subsumed many Union and State indirect taxes into CGST, SGST and IGST. The GST Council gives States two-thirds vote weight and the Union one-third, with a three-fourths decision rule. Five-year compensation was the federal bargain; dual GST kept States as taxing governments. Mohit Minerals held Council recommendations not strictly binding law. Accommodation is real in design and strained in revenue politics after compensation.

Q11 · UPSC Mains 2021 · GS II · 15 marks

The jurisdiction of the Central Bureau of Investigation(CBI) regarding lodging an FIR and conducting probe within a particular state is being questioned by various States. However, the power of States to withhold consent to the CBI is not absolute. Explain with special reference to the federal character of India.

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Police is a State List subject; the CBI enters a State under the DSPE Act, 1946, mainly through Section 6 consent. General consent was the administrative convenience; Andhra Pradesh and West Bengal showed it can be withdrawn, forcing case-specific permission for new FIRs. The power is not absolute: court-ordered probes, Union Territories, and already-attached investigations are not killed by a political letter. Vineet Narain insulated the agency’s working; it did not abolish federal consent. A clear CBI statute would reduce standoffs without pretending India has a U.S.-style dual police sovereignty.

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