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NITI Aayog’s 10th Governing Council: Centre-State Issues

28 May 20251 min read
NATIONAL AFFAIRSNITI Aayog’s 10thGoverning Council:Centre-StateIssues28 May 2025safalsetu.com

Why in the news

The 10th Governing Council meeting highlighted strains in Centre-State relations and the Prime Minister’s call for ‘Team India’.

Challenges

  • States feel coordination flows one way.
  • The NITI Aayog Council meets yearly; the GST Council had not met for over five months despite a quarterly norm.

State proposals

  • N. Chandrababu Naidu (Andhra Pradesh): three State sub-groups on growth, demographic dividend and tech governance.
  • M.K. Stalin (Tamil Nadu): raise devolution from 41% to 50%, citing the post-GST era.

Fiscal concerns

  • GST yields lag expectations.
  • Own tax revenue-to-GSDP: 6.6% to 7.2%, uneven across States.
  • GST compensation ended after five years.

Way forward

  • More structured dialogue, revisited devolution and sub-group mechanisms.

Exam angle

  • Concept: fiscal federalism.

Test yourself

1. What share of central taxes did Tamil Nadu's CM propose for States at the 10th NITI Aayog Governing Council?

Stalin proposed raising States' share from 41% to 50%.

2. Which approach did PM Modi urge between Centre and States at the 10th NITI Aayog Governing Council meeting?

He urged a collaborative 'Team India' approach.

3. States' own tax revenue-to-GSDP ratio improved to what level by 2024-25, per the Governing Council discussion?

The ratio rose from 6.6% in 2017-18 to 7.2% in 2024-25.

This topic is part of Daily Current Affairs 26 & 27 May 2025 (23 topics).

All topics of the dayDay quizMay 2025

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