GS2 › Federalism and Centre–State Relations

Revision note: Financial Relations, the Finance Commission and the GST Council

Vertical and horizontal imbalances; Part XII (Arts 264–293); Art 265 no tax without law
80th Amdt 2000: all central taxes in divisible pool (Art 270), except cesses & surcharges
Grants: Art 275 statutory (FC); Art 282 discretionary
FC (Art 280): President, every 5 years, chairman + 4; 14th 42%; 15th 41% (income distance 45%, population 15%, area 15%, forest 10%, demographic 12.5%, tax effort 2.5%); 16th Panagariya (2026–31)
GST 1 July 2017; Art 246A, 269A, 279A; Council: FM chairs, 3/4 majority, Centre 1/3 weight; Mohit Minerals 2022
States need Centre's consent to borrow if indebted (Art 293(3))

Revision card summarising Financial Relations, the Finance Commission and the GST Council — One-page visual summary of the key points to revise.

Source: https://upscprep.in/upsc/gs2/federalism-and-centre-state-relations/financial-relations-the-finance-commission-and-the-gst-council/ · UPSCPrep.in