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.

India's Constitution establishes a federal structure with a strong Centre. Recent shifts in fiscal, legislative and administrative arrangements have reshaped Centre-State relations, making trust-building central to strengthening cooperative federalism.

Recent developments

• The GST regime and the GST Council have pooled indirect-tax sovereignty, while states voice concerns over compensation and revenue autonomy.
• The rising share of cesses and surcharges (which lie outside the divisible pool) has reduced states' effective share of central taxes despite Finance Commission devolution.
• NITI Aayog has replaced the Planning Commission's grants, and the Centre uses centrally sponsored schemes and conditionalities that affect state priorities.
• Debates over the role of Governors, All-India Services and central agencies have added to friction.

Measures to build trust and strengthen federalism

• Revitalise the Inter-State Council under Article 263 and the Zonal Councils for structured dialogue.
• Implement pending Sarkaria and Punchhi Commission recommendations, especially on Governors, Article 356 and legislative relations.
• Ensure fiscal fairness by moderating cesses/surcharges and honouring Finance Commission awards; give states flexibility in centrally sponsored schemes.
• Strengthen consultative bodies like the GST Council through consensus and dispute-resolution mechanisms.
• Respect subsidiarity and the spirit of the Seventh Schedule, avoiding encroachment on the State List.

Cooperative and competitive federalism, built on consultation and fiscal trust, is essential for a strong, plural Union.