Historic 100% attendance at Niti meet, DKS breaks Karnataka boycott

For the first time since NITI Aayog's establishment in 2015, Chief Ministers of all 28 states attended the Governing Council meeting — a historic 100% attend...

What Happened

For the first time since NITI Aayog's establishment in 2015, Chief Ministers of all 28 states attended the Governing Council meeting — a historic 100% attendance at the 11th Governing Council meeting held on June 11, 2026.
States governed by parties outside the ruling NDA coalition, including Karnataka, Kerala, Himachal Pradesh, Telangana, and Punjab, participated fully — ending a pattern of selective boycotts by opposition-governed states at previous meetings.
Karnataka's Chief Minister's participation was particularly notable, marking a departure from the state's earlier stance of boycotting NITI Aayog meetings to protest against the body's role in Centre-state fiscal relations.
The meeting, held at Rashtrapati Bhavan Cultural Centre, also included Lieutenant Governors and Administrators representing 5 Union Territories.
The theme of the meeting — "Inclusive Human Development for Viksit Bharat" — provided a development-focused agenda that bridged ideological divides among attending states.

Static Topic Bridges

Centre-State Relations: Constitutional Framework

India's federal structure is defined in Part XI of the Constitution (Articles 245–263), covering legislative, administrative, and financial relations between the Union and states. The Seventh Schedule distributes legislative subjects between the Union List (List I, 98 subjects), State List (List II, 59 subjects), and Concurrent List (List III, 52 subjects). In areas of conflict on Concurrent List matters, Union law prevails under Article 254.

Article 245: Parliament's laws extend to the entire territory of India; state legislatures make laws for the state.
Article 246: Distribution of legislative powers using the three lists of the Seventh Schedule.
Article 254: Repugnancy clause — if state law on a Concurrent List subject conflicts with Central law, the Central law prevails.
Article 256: States are obligated to exercise their executive power to ensure compliance with laws made by Parliament.
Article 257: States must not impede the exercise of Union's executive power.
Article 263: President may establish an Inter-State Council to investigate disputes between states or recommend coordination on policy of common interest.
India is described as a "Union of States" (Article 1) — not a federation of equal sovereigns. States have no right to secede, and the Union retains overriding authority in an Emergency (Article 356).

Connection to this news: The 100% attendance at NITI Aayog's Governing Council — despite the body having no statutory power over states — reflects how cooperative federalism norms are consolidating. States, regardless of party affiliation, are engaging with the national development agenda through institutional channels.

Boycott Politics and Cooperative Federalism in Practice

NITI Aayog's Governing Council has, since its inception, faced occasional boycotts from opposition-governed states on the grounds that the body lacks the resource-allocation powers of the Planning Commission and that its policy recommendations tend to reflect Central priorities. These boycotts have been characterised as political protests against perceived fiscal centralisation, especially following the 14th and 15th Finance Commission recommendations and changes in Centrally Sponsored Scheme (CSS) funding patterns.

Planning Commission era: States received discretionary "plan grants" through the Gadgil-Mukherjee formula, giving them predictable and needs-based central assistance. NITI Aayog's advisory-only status removed this allocation mechanism.
Centrally Sponsored Schemes (CSS): Post-14th Finance Commission, the Centre shifted the funding ratio of many CSS from 75:25 (Centre:State) to 60:40 or 50:50, increasing the financial burden on states — a key grievance of opposition-governed states.
GST Compensation: States' concerns over GST compensation cessation (the 5-year compensation period under Article 279A ended in June 2022) have been a recurring source of Centre-state tension.
Fiscal Federalism tension: The 15th Finance Commission (2021–26) devolved 41% of the divisible pool to states (a marginal reduction from 42% recommended by the 14th Finance Commission, adjusted for J&K's bifurcation). The 16th Finance Commission, constituted in 2024, is now working on the 2026–31 formula.

Connection to this news: The end of boycott politics at the 11th Governing Council signals a potential realignment in Centre-state dynamics — states appear to be choosing engagement over protest, possibly reflecting the political calculation that substantive demands (on Special Category Status, CSS funding ratios, fiscal transfers) are better pursued inside the room than outside it.

Inter-State Council vs. NITI Aayog Governing Council

India has two principal platforms for Centre-state and inter-state coordination: the Inter-State Council (constitutional, under Article 263) and the NITI Aayog Governing Council (non-constitutional, executive creation). Understanding the distinction is critical for Polity Mains answers.

Dimension	Inter-State Council	NITI Aayog Governing Council
Constitutional basis	Article 263	Cabinet Resolution, 2015
Established	1990 (Sarkaria Commission recommendation)	2015
Chair	Prime Minister	Prime Minister
Members	PM, Chief Ministers, 6 Cabinet Ministers	PM, all CMs, all LGs/Admins, NITI Aayog members
Function	Investigates disputes; recommends coordination on inter-state and Centre-state matters	Policy coordination; strategic planning for Viksit Bharat
Binding power	Recommendations only	Recommendations only
Meeting frequency	Irregular (met rarely — last substantive meeting 2016)	Annual (target)

The Sarkaria Commission (1983–88) recommended making the Inter-State Council a permanent, regularly meeting body; this was partially implemented in 1990.
The Punchhi Commission (2007–10) recommended further strengthening of Inter-State Council and devolving more powers to states.

Connection to this news: The 100% Governing Council attendance effectively fills a gap left by the Inter-State Council's infrequent meetings. The Governing Council, though non-constitutional, is emerging as the de facto annual federal coordination summit in India.

Finance Commission and Fiscal Federalism

The Finance Commission is a constitutional body established under Article 280, constituted every five years by the President. Its core mandate is to recommend the distribution of the divisible pool of central taxes between the Union and states (vertical devolution) and among states (horizontal distribution), as well as grants-in-aid principles.

Article 280: President constitutes a Finance Commission; its recommendations are persuasive but not binding on the Union.
14th Finance Commission (2015–20): Increased states' share in divisible pool from 32% to 42% — the highest ever devolution. However, it simultaneously ended Special Category Status for most states (except NE and three hill states) and restructured grants.
15th Finance Commission (2021–26): Devolved 41% to states; recommended a separate grant for states with less than 15% forest cover; introduced performance-based grants.
16th Finance Commission: Constituted in 2024; formulating the formula for 2026–31; its recommendations will shape whether Special Category Status demands from states like Punjab and Bihar are addressed.
Key criteria for horizontal distribution (among states): population (2011 census), area, forest and ecology, income distance, demographic performance (states that achieved population stabilisation get a bonus), and tax effort.

Connection to this news: Several state Chief Ministers used the NITI Aayog Governing Council forum to raise Finance Commission-related demands — including Special Category Status (Punjab), high-level fiscal impact assessment (Himachal Pradesh), and GST compensation concerns — demonstrating that the Governing Council is increasingly used as a pre-Finance Commission demand-signalling platform.

Key Facts & Data

11th Governing Council meeting: June 11, 2026 — first meeting with 100% attendance from all 28 state CMs.
NITI Aayog established: January 1, 2015, by Cabinet Resolution.
Inter-State Council: Article 263; established in 1990; chaired by PM.
14th Finance Commission: Raised states' share in divisible pool to 42% (from 32%).
15th Finance Commission: Reduced to 41% (adjusted for J&K bifurcation).
16th Finance Commission: Constituted 2024; will cover 2026–31.
CSS funding pattern shift: Post-14th FC, Centre shifted many schemes from 75:25 to 60:40 or 50:50 — a key grievance of states.
GST compensation period: Ended June 2022 (5-year guarantee under Article 279A read with the GST (Compensation to States) Act, 2017).
Sarkaria Commission: 1983–88; recommended Inter-State Council's permanent activation.
Punchhi Commission: 2007–10; recommended further decentralisation and strengthening of state autonomy.
India has 28 states and 8 Union Territories (as of 2024); all are represented in the NITI Aayog Governing Council.