Centre-State Finances (Fiscal Policy & Budget).
Syllabus: UPSC Pre GS1: Economic & Social Development; Mains GS3
GST for UPSC: 101st Amendment and Articles 246A, 269A and 279A, GST Council voting, taxes subsumed, items outside GST, 2025 rate reform,…
Finance Commission for UPSC: Article 280, composition, vertical and horizontal devolution, the 15th FC formula, the 16th FC (2026-31) and real Prelims…
The National Statistics Office has released a draft guideline for States and UTs to estimate Gross State Domestic Product from the expenditure side, with base year 2022-23. Today some States compile government consumption and capital formation, but none estimates private consumption. Comments are invited till 28 October 2026.
UPSC angle: Prelims: GDP measurement concepts. · Mains GS-III: national income accounting.
9 Oct 2026
A PIB Backgrounder of 19 August 2026 answers questions on the MMDR Amendment Act, 2026. States levy about 14 kinds of taxes and charges on mining, and some tax mineral-bearing land at up to 20 per cent. The Centre says States will keep about 90 per cent of mining revenue, and minor minerals stay fully with the States.
UPSC angle: Prelims: royalty vs tax.
19 Aug 2026
The Union Government released an additional tax devolution instalment of ₹1,09,019 crore to the States on 1 August 2026, the Finance Ministry said. It comes on top of the normal monthly devolution due on 10 August. The aim is to help States speed up capital and development spending. Uttar Pradesh got the largest share, ₹19,208 crore.
UPSC angle: Prelims: divisible pool; FC share.
1 Aug 2026
The Report of the Committee on Datasets for State Finance Commissions was released in New Delhi on 8 June 2026. Prepared by the Panchayati Raj Ministry, it lists the data SFCs need and recommends Panchayat-level fiscal databases, SFC Cells in States, a common reporting format and a CAG performance audit of the 73rd Amendment's implementation.
UPSC angle: Prelims: SFC articles.
8 Jun 2026
States wanted more than 41%. Keeping it unchanged means the real fight now is over cesses and surcharges, which are not shared.
UPSC angle: Prelims: vertical devolution share. · Mains: fiscal federalism.
1 Feb 2026
The states' share of the divisible pool and the formula weights decide how much each state gets, so read the report's numbers when it is tabled.
UPSC angle: Prelims: Article 280. · Mains: fiscal federalism.
17 Nov 2025