Living Syllabus

GS Paper II · Federalism

Fiscal Federalism Current Affairs for UPSC (GS Paper II)

From the syllabus: Functions and responsibilities of the Union and the States, issues and challenges pertaining to the federal structure, devolution of powers and finances up to local levels

Why it matters: Questions focus on resource mobilization challenges, tax devolution formulas, and the financial autonomy struggles experienced by state governments.

23 news stories14 quiz questions9 Mains questions

In the news

October 2026

  • 11 Oct 2026

    GST Council Unveils Major Administrative Overhaul

    The Goods and Services Tax Council has unveiled a series of administrative and process reforms aimed at streamlining input tax credit refunds, easing business registrations, and reducing litigation. Union Finance Minister Nirmala...

  • 10 Oct 2026

    GST Council Rolls Out Process Reforms to Streamline Tax Compliance

    The Goods and Services Tax (GST) Council has announced a wide-ranging package of procedural reforms aimed at easing input tax credit refunds, simplifying business registrations, and reducing litigation. Union Finance Minister Nirmala...

  • 08 Oct 2026

    Structural Reforms Vital for Municipal Property Taxation

    India's cumulative property tax collections remain low at just 0.15 to 0.20 percent of GDP, pointing to an urgent need for structural reforms in municipal bodies. Municipalities struggle with outdated valuation systems, low tax...

  • 06 Oct 2026

    Centre Proposes Five-Pronged Reform Plan at GST Council

    The Central Government is set to present a comprehensive five-pronged reform plan during the upcoming Goods and Services Tax (GST) Council meeting. The proposed plan focuses on process reforms, structural rationalisation of tax rates,...

September 2026

  • 25 Sep 2026

    Mineral Rights Legislation Raises Revenue Concerns for States

    Legislators in mineral-rich states like Odisha have raised concerns over recent parliamentary amendments to mining laws that curb the power of state governments to impose additional taxes and cesses on mineral rights. State authorities...

  • 18 Sep 2026

    Kearney Study Suggests Reforms for Tamil Nadu's Fiscal Capacity

    A study conducted by management consulting firm Kearney has analyzed the fiscal health of Tamil Nadu. The report states that the core challenge for the state is not excessive borrowing but lower efficiency in tax collection and spending...

  • 17 Sep 2026

    Mining Law Amendments Spark Concerns Over State Revenues

    Recent amendments to central mining laws have raised key questions regarding fiscal federalism and state revenue shares. States bearing the infrastructural, environmental, and social burdens of mineral extraction contend that they must...

  • 01 Sep 2026

    Gross GST Revenue Collection Hits Milestone

    India registered a gross Goods and Services Tax (GST) collection of 2 lakh crore rupees in August 2026, representing a 15 percent year-on-year increase. The total mop-up comprised Central GST at 38,413 crore rupees, State GST at 46,316...

  • 01 Sep 2026

    Debates Rise Over Equity and Efficiency in 16th Finance Commission Mandate

    Economists and policy experts have highlighted concerns regarding the balancing act between economic efficiency and inter-state equity for the 16th Finance Commission. As revenue distribution formulas are finalized, critics emphasize...

August 2026

July 2026

  • 26 Jul 2026

    West Bengal curtails Panchayat financial powers

    The West Bengal Assembly has passed a Bill that deprives panchayat pradhans (village council chiefs) of their financial powers. The Bill was passed with 169 votes in favour and 13 against, while 32 MLAs abstained. This legislative move...

  • 21 Jul 2026

    Gujarat Tops NITI Aayog's Investment Friendliness Index

    Gujarat has emerged at the top of NITI Aayog's inaugural Investment Friendliness Index 2026, scoring 56.6 points. Maharashtra and Tamil Nadu secured the second and third positions respectively in this first-of-its-kind assessment of 17...

  • 12 Jul 2026

    Tamil Nadu Proposes Joint Funding for Chennai MRTS Revamp

    The Tamil Nadu government has urged the Union government to treat the 6,600 crore Chennai Mass Rapid Transit System (MRTS) revamp as a Central sector project. The proposed plan aims to upgrade the existing railway stations and passenger...

  • 06 Jul 2026

    GST Marks Nine Years With Import Buoyancy and Domestic Lag

    As the Goods and Services Tax (GST) system marks nine years of implementation, revenue collections grew by 14 percent in June 2026. However, economic experts highlight that the growth was largely driven by imports, while domestic sales...

  • 04 Jul 2026

    Financial and Concessionaire Friction Over Vizhinjam Port Agreement

    The Kerala state government is raising policy concerns regarding the financial yield and operational clauses in the Vizhinjam Port agreement signed with Adani Ports. The concession agreement, executed on a...

Practise Fiscal Federalism

10 of our latest questions on this topic (out of 14).

Question 1 of 10

Under which constitutional provision is the Goods and Services Tax (GST) Council constituted in India?

Mains practice

The path to sustainable economic growth for emerging market economies in the 21st century lies at the intersection of climate resilience, fiscal efficiency, and collaborative technological frameworks. Analyze this statement in light of India's current domestic economic policies, state-level fiscal challenges, and international engagements.

15 marks

Sustaining India's economic growth and ecological stability requires a balanced approach combining robust governance institutions, sustainable resource management, and strategic international partnerships. Discuss this statement in light of recent challenges in fiscal federalism, water security, and global supply chain integration.

15 marks

Sustained long-term economic growth requires addressing structural weaknesses in fiscal governance, capital formation, and institutional regulation while adapting to changing global realities. Analyze how sub-national fiscal challenges, private investment bottlenecks, and financial sector reforms impact India's broader developmental ambitions.

15 marks

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Previous years' questions

Past exam questions sorted by topic are coming here. Until then, the full papers are in our previous papers library.

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