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

India’s constitutional framework, characterized by K.C. Wheare as "quasi-federal", has witnessed significant friction due to recent structural and legislative shifts by the Union Government.

Recent Changes in Centre-State Relations

Some changes deepened cooperative federalism: the GST Council (2017) pooled fiscal sovereignty, the 14th Finance Commission raised states' share of the divisible pool to 42% (41% under the 15th and 16th), and NITI Aayog's Governing Council and state rankings engage chief ministers directly. Others caused friction. Legislatively, the Union enacted statutes in areas that several states argued fall within their domain, including the NIA Act 2019 expanding federal policing, the now-repealed farm laws, the Dam Safety Act 2021, and the MMDR Amendment Act 2021. Frictional points also arose over centralized entrance exams (NEET/JEE) and divergent stances on Citizenship Amendment Act (CAA) implementation. Institutionally, the end of Planning Commission grants shifted discretionary transfers towards centrally sponsored schemes, and direct transfers such as PM-KISAN reduced the role of state machinery. Politically, controversial invocations of Article 356 (Uttarakhand 2016, Maharashtra 2019) reignited autonomy debates, and Governors' delays on State Bills led to State of Tamil Nadu v Governor of Tamil Nadu (2025), though the Court's November 2025 opinion on the Presidential Reference held that fixed timelines cannot be judicially imposed. The GNCTD (Amendment) Act, 2023 also overrode the Court's 2023 ruling on Delhi's control of services. Fiscally, delays and cess extensions concerning GST compensation strained state finances.

Measures for Trust-Building and Strengthening Federalism

Institutional and Political Reforms: Revitalize the Inter-State Council (Article 263) with a fixed tenure, mandatory quarterly meetings, and an institutionalized dispute-resolution mechanism with binding arbitration. Activate Zonal Councils for regional coordination, empower the Rajya Sabha as a genuine states' chamber, and give states a formal role in designing centrally sponsored schemes. Strictly enforce the S.R. Bommai precedent to restrict Article 356 solely to genuine breakdowns of constitutional machinery.

Fiscal and Legislative Cooperation: In line with Sarkaria Commission recommendations, establish mandatory pre-legislative consultation with states for Concurrent List subjects. Reform the GST Council’s voting structure toward balanced weighted voting, implement Finance Commission devolution recommendations without delay, provide unconditional state-specific grants, and protect asymmetrical federalism through tailored provisions for special category states.

Balancing cooperative and competitive federalism through institutional dialogue is essential to build genuine trust and realize the constitutional vision of "Team India."