Centre–State Relations in India: Legislative, Administrative and Financial (UPSC Notes + PYQs)
Centre-State relations for UPSC: legislative (Art. 245–255), administrative (Art. 256–263) and financial relations (Art. 268–293), commissions and PYQs.
Centre-State Relations
Centre-State Relations (Parliamentary & Federal System).
Syllabus: UPSC Pre GS1: Indian Polity and Governance; Mains GS2
Explainers
In the news
₹1,09,019 crore advance tax devolution released to States
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
₹401.50 crore released for district court infrastructure
The Department of Justice released ₹401.50 crore on 13 May 2026, the first instalment of the mother sanction for 2026-27 under the Centrally Sponsored Scheme for district and subordinate court infrastructure. Since inception, ₹12,844.72 crore has been released, building 6,345 court halls and 4,023 residential units by 31 March 2026. A five-year extension to 2030-31 is under process.
UPSC angle: Prelims: judicial infrastructure CSS.
13 May 2026
₹5,000 crore incentive for State mining reforms under SASCI 2026-27
For FY 2026-27 the Scheme for Special Assistance to States for Capital Investment includes a ₹5,000 crore mining-reforms incentive. The Ministry of Mines issued operational guidelines covering five mandatory reform actions, rewards for auctioning and starting production, and prizes for top States on the State Mining Readiness Index.
UPSC angle: Prelims: SASCI.
24 Apr 2026
₹1,536 crore XV FC grants to panchayats in 8 States
Finance Commission grants are how money reaches panchayats directly.
UPSC angle: Prelims: FC grants.
1 Apr 2026
Bill to make Amaravati sole capital of Andhra Pradesh
Ends capital uncertainty.
UPSC angle: Prelims: AP Reorganisation Act.
1 Apr 2026
XV FC grants of ₹730 crore to rural local bodies in Gujarat and Haryana
Untied grants let panchayats choose local priorities, but release conditions such as audited accounts often delay them.
UPSC angle: Mains: fiscal decentralisation.
21 Oct 2025