Cooperative Federalism vs. Competitive Federalism

India's Constitution creates a "union of states" with a strong Centre, but fiscal arrangements are meant to be cooperative. Cooperative federalism — where Centre and states work as partners — was a key theme of NITI Aayog's early years (replacing the Planning Commission in 2015). However, fiscal tensions have persisted over: (1) the Centre's declining share of CSS funds passed to states; (2) the growing cess and surcharge pool (not shared with states); (3) delays in releasing Finance Commission grants; and (4) conditions attached to CSS that reduce state fiscal autonomy. The GST Council — a constitutional body under Article 279A — is meant to be a collaborative forum for indirect tax decisions, but rate changes decided there affect state revenues directly.