NITI Aayog and Deepening Federalism in India

Key Points

• 1India has witnessed cooperative and fiscal federalism in the past 11 years, with the Centre and states working together.
• 2The transformation of the Planning Commission into NITI Aayog in 2015 promoted collaborative partnerships between the Centre and states.
• 3NITI Aayog encourages states to take ownership of their development agendas and acts as a bridge between the Centre and states.
• 4The states’ share in the divisible pool of taxes increased from 32% to 42%, as recommended by the 14th Finance Commission.
• 5States receive around 71% of the revenue from GST, while the Centre's share is about 29%.
• 6The Union budget 2025-26 proposed Rs 1.5 lakh crore for 50-year interest-free loans to states for capital expenditure.
• 7Between 2015-16 and 2023-24, Central Sector and Centrally Sponsored Schemes releases increased by 197%.