Centre-State Relations is a fundamental constitutional concept that defines the distribution of powers between the Union (Central) government and the State governments in India, forming the core of the country's quasi-federal structure. Its origin lies in the federal features introduced by the Government of India Act, 1935, and it was formally established with the adoption of the Constitution of India in 1950 to ensure national unity while accommodating regional diversity.
The mechanism is detailed primarily in Part XI and Part XII of the Constitution, categorised into three types. Legislative Relations (Articles 245 to 255) divide law-making authority through the Seventh Schedule, which contains the Union List, State List, and Concurrent List. Administrative Relations (Articles 256 to 263) govern the executive functions, including the Centre's power to issue directions to the States. Financial Relations (Articles 268 to 293) allocate taxing powers and revenue sharing, with the Finance Commission (Article 280) recommending the division of net tax proceeds.
An informed reader should connect this concept to the Inter-State Council (Article 263) for coordination, the All India Services (Article 312) for administrative uniformity, and the recommendations of the Sarkaria Commission (1983) and Punchhi Commission (2007) on improving relations. Recently, the system has seen significant change with the implementation of the Goods and Services Tax (GST), which replaced multiple indirect taxes and established the GST Council. The Planning Commission was replaced by the NITI Aayog, shifting the focus towards cooperative federalism. The 15th Finance Commission recommended a 41% share of central taxes for the states for the period 2021-26, maintaining the devolution percentage from the previous commission.