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. (Answer in 250 words)

Introduction

Indian federalism combines constitutional division with cooperation. Recent policy and institutional changes have altered fiscal, administrative and regulatory relationships.

Recent changes

• GST created a shared tax architecture and the GST Council, while successive Finance Commissions and centrally sponsored schemes shape fiscal space.
• NITI Aayog replaced the Planning Commission and emphasises cooperative and competitive federalism.
• New laws, central agencies, governors’ roles, digital platforms and centrally designed schemes have increased Union coordination, sometimes generating concerns over State autonomy.

Building trust

• Hold regular, substantive Inter-State Council meetings; consult States before legislation affecting the State List or concurrent domains.
• Ensure predictable, untied and timely transfers, transparent GST compensation arrangements and rational CSS flexibility.
• Respect the Governor’s constitutional neutrality, expedite assent to Bills, strengthen local-body devolution and use cooperative data standards.
• Institutionalise dispute resolution, parliamentary scrutiny and outcome-based rather than command-based coordination.

Keywords: cooperative federalism, GST Council, Inter-State Council, fiscal devolution, Governor, subsidiarity.