Centre–State Relations and State Finances of Uttarakhand

Uttarakhand zonal council: the Central Zonal Council

Zonal councils come from the States Reorganisation Act 1956. So they are statutory bodies, not constitutional ones. India has five such councils.

Also, the Union Home Minister chairs each council. Meanwhile, the Chief Ministers of member States serve as Vice-Chairman by yearly rotation. In addition, each State sends its CM and two ministers nominated by the Governor.

Council	Members
Northern	Haryana, Himachal Pradesh, Punjab, Rajasthan, Delhi, Chandigarh, J&K, Ladakh
Central	Uttar Pradesh, Uttarakhand, Madhya Pradesh, Chhattisgarh
Eastern	Bihar, Jharkhand, Odisha, West Bengal
Western	Goa, Gujarat, Maharashtra, DNH and DD
Southern	Andhra Pradesh, Karnataka, Kerala, Tamil Nadu, Telangana, Puducherry

Thus the Uttarakhand zonal council is the Central Zonal Council. However, note that the hill State does not sit with Himachal Pradesh. Himachal Pradesh, in fact, belongs to the Northern Council.

Similarly, the North Eastern States have a separate body. They fall under the North Eastern Council, set up under the NEC Act 1971. Later, Sikkim joined it in 2002.

The Chief Minister in Centre–State forums

The Chief Minister represents the State in several national forums. For example, the CM is a member of the Inter-State Council. Also, the CM sits on the NITI Aayog Governing Council.

Besides, the CM is a member of the Central Zonal Council. At home, moreover, the CM chairs the SETU Aayog, the State’s NITI-model think tank. Pushkar Singh Dhami holds the office (as on 29 October 2026).

The Governor as the link with the Centre

The office of Governor also ties the State to the Centre. First, the President appoints the Governor under Article 155. Second, the Governor holds office during the pleasure of the President under Article 156.

Moreover, the Governor can reserve State Bills under Article 200. The Governor also sends reports under Article 356. The list of Governors of Uttarakhand covers every holder of the office.

President’s Rule in 2016

The State saw President’s Rule in 2016. However, it came in two spells. First, it ran from 27 March to 21 April, when the High Court lifted it.

Then a second spell ran from 22 April to 11 May, after the Supreme Court stayed that order. Thus it lasted about 44 days in all. Finally, Harish Rawat returned after a floor test ordered by the Supreme Court. The list of Chief Ministers shows his three spells.

Special category status

The Centre approved special category status for Uttaranchal in 2001. A Lok Sabha reply of 22 August 2001 recorded it. The grounds were hilly terrain, international borders and a weak economic base.

Today, Uttarakhand is one of 11 special category States. As a result, the Centre and the State share core centrally sponsored schemes 90:10 since 2016-17.

The same ratio also appears in justice schemes. For example, Fast Track Special Courts are a centrally sponsored scheme since 2 October 2019. Moreover, they use the Nirbhaya Fund, with a 90:10 share for Himalayan States.

State funds under the Constitution

The Constitution gives the State three kinds of public funds. The table, therefore, lists them with their Articles.

Fund	Article	Key point
Consolidated Fund of the State	266(1)	Main fund of the State
Public Account of the State	266(2)	Separate public account
Contingency Fund of the State	267(2)	Imprest at the Governor’s disposal; created by State law

Thus the Governor controls the Contingency Fund. However, the State Legislature creates it by law.

The budget process in the Vidhan Sabha

The budget goes before the House under Article 202. Also, it separates charged expenditure from voted expenditure. Then the Appropriation Bill follows under Article 204.

Supplementary and excess grants come under Article 205. Moreover, excess grants need regularising on the report of the Public Accounts Committee. Similarly, Money Bills come under Articles 198–199 and 207.

A Money Bill starts only in the Assembly. Also, it needs the Governor’s recommendation. Since the State has no Legislative Council, the Uttarakhand Vidhan Sabha alone passes the budget. Finally, the State budget for 2026-27 is ₹1,11,703 crore.

Audit: the CAG and the PAC

Articles 148–151 deal with the Comptroller and Auditor General. In addition, the CAG has two offices at Dehradun. One is the Accountant General (A&E), and the other is the Principal Accountant General (Audit).

Under Article 151(2), CAG reports go to the Governor. The Governor then lays them before the Legislature. Finally, the Public Accounts Committee examines them.

Exam corner: common traps

• Central, not Northern: Uttarakhand is in the Central Zonal Council. However, Himachal Pradesh is in the Northern Council.
• Statutory, not constitutional: zonal councils come from the States Reorganisation Act 1956.
• Chair vs Vice-Chairman: the Union Home Minister chairs; CMs only rotate as Vice-Chairman.
• Two spells: President’s Rule in 2016 ran 27 March–21 April and 22 April–11 May.
• Contingency Fund: the Governor controls it, but State law creates it under Article 267(2).

In the news

• 16th Finance Commission: 41 percent devolution for 2026–31 — the devolution award for 2026–31, which shapes State finances.
• Uttarakhand budget 2026-27: the GYAN model and Santulan — the ₹1,11,703 crore State budget for 2026-27.
• Pride of Hills: SASCI 2026-27 gives Uttarakhand ₹3,460 crore — ₹3,460 crore for the State in 2026-27, as 50-year interest-free loans.
• 11th NITI Aayog Governing Council meeting on Viksit Bharat 2047 — a forum where the CM represents the State.

Practise Uttarakhand Polity

• Daily 25 free practice questions — UKPSC previous-year questions, every morning.
• UKPSC previous year papers — bilingual PDFs of Upper PCS, Lower PCS, RO/ARO and more.
• UKPSC 2026 Prelims Test Series — full-length tests with detailed solutions.

Preparing for UKPSC Upper PCS, Lower PCS or RO/ARO? Join SAMVEG IAS, Dehradun. For batch details, call or WhatsApp +91 84759 04943.

Frequently Asked Questions

Facts as on 29 October 2026. Sources: Lok Bhavan (Raj Bhavan) Uttarakhand, High Court of Uttarakhand, Uttarakhand Vidhan Sabha, Election Commission of India, State departments, India Code and PIB.