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Predicted Questions with Model Answers
Q1 (5 marks — 50 words): What is the difference between cooperative federalism and competitive federalism?
Model Answer:
Cooperative federalism involves Centre and states working together on shared goals — the GST Council (Article 279A), Finance Commission devolution, and NITI Aayog Governing Council are examples. Competitive federalism involves states competing against each other for investment and performance rankings — NITI Aayog's SDG Index, Ease of Doing Business rankings, and performance-based Central scheme transfers operationalise this. Both are essential to India's federal architecture under the 2015 post-Planning Commission framework.
(60 words)
Q2 (5 marks — 50 words): Describe the key recommendations of the Sarkaria Commission on Centre–State relations.
Model Answer:
The Sarkaria Commission (1983–87, chairman Justice R.S. Sarkaria) recommended: (i) Article 356 (President's Rule) should be invoked only as a last resort after exhausting all alternatives; (ii) the Governor should be an eminent person from outside the state and not a recent politician; (iii) the Inter-State Council should be made active and functional; (iv) the Centre should consult states before legislating on Concurrent List subjects.
(59 words)
Q3 (5 marks — 50 words): What did the Supreme Court hold in S.R. Bommai v. Union of India (1994)?
Model Answer:
In S.R. Bommai (1994), a 9-judge constitutional bench held: (i) Article 356 proclamations are subject to judicial review — courts can examine whether the presidential satisfaction is based on relevant material; (ii) a floor test in the state legislature must determine majority — the Governor/President should not assume a government has lost majority; (iii) the state assembly must be suspended, not dissolved, pending Parliamentary approval of the proclamation.
(59 words)
Q4 (10 marks — 150 words): Examine the financial relations between the Centre and states in India. What are the main sources of tension?
Model Answer:
India's fiscal federalism rests on a hierarchical framework: the Centre collects most significant taxes and shares them with states through the Finance Commission mechanism. The 15th Finance Commission (2020–26) recommended 41% of the divisible pool for states — a reduction from 42% (14th FC), citing J&K reorganisation costs.
The principal tensions are structural. First, cesses and surcharges — a growing share of central revenues collected through levies like Education Cess, CAMPA cess, and the Pradhan Mantri Garib Kalyan Cess — are explicitly excluded from the divisible pool. States cannot share these. As the Centre increasingly relies on cesses to fund its programs, the effective devolution to states declines.
Second, Centrally Sponsored Schemes (CSS) impose conditionalities on how states use shared funds — constraining state autonomy. States must co-fund CSS, tying up state resources. Third, Article 293 prevents states from borrowing abroad and requires Central consent for domestic borrowing if states have outstanding Central loans — limiting fiscal space for fiscally stressed states.
The GST transformation (101st Amendment 2016) resolved some tensions by creating a joint decision-making framework (GST Council) but also limited states' tax autonomy — states can no longer independently alter rates on goods and services covered by GST. The promised GST compensation for revenue shortfall (5-year guarantee 2017–22) became contentious post-COVID when collections fell sharply. The Sarkaria Commission, Punchhi Commission, and states collectively have argued for including cesses in the divisible pool — a reform yet to be implemented.
(196 words)
Q5 (5 marks — 50 words): Explain the composition and function of the GST Council.
Model Answer:
The GST Council (Article 279A, created by the 101st Amendment 2016) is a constitutional body chaired by the Union Finance Minister with the Finance Ministers of all states and UTs as members. Decisions require a weighted majority of three-fourths of votes cast — the Centre holds one-third weight, states collectively two-thirds. It decides GST rates, exemptions, and thresholds — India's most significant institutional example of cooperative federalism.
(58 words)
Q6 (5 marks — 50 words): What is the 7th Schedule? What are residuary powers?
Model Answer:
The 7th Schedule of the Constitution divides legislative subjects into three lists: Union List (100 subjects — Parliament only), State List (61 subjects — state legislatures, with Centre override in 5 circumstances), and Concurrent List (52 subjects — both, Centre prevails on repugnancy under Article 254). Residuary powers (Article 248) vest with Parliament — subjects not in any list are Parliament's exclusive domain — a strong unitary feature differentiating India from the USA and Australia where residue belongs to states.
(64 words)