State governments of India

The state governments of India are the governments ruling over the 28 states and three union territories (there are eight union territories but only three union territories have legislative assemblies as well as governments) of India with the head of Council of Ministers in every state being the Chief Minister, who also serves as the head of the government. Power is divided between the Union Government (federal government) and the state governments. The federal government appoints a Governor for each state, who serves as the ceremonial head of state, and a Lieutenant Governor (or Administrator) for certain union territories, whose powers vary depending on the specific union territory.

Each state has a legislative assembly. A state legislature that has one house – the State Legislative Assembly (Vidhan Sabha) – is a unicameral legislature. A state legislature that has two houses – the State Legislative Assembly and State Legislative Council (Vidhan Parishad) – is a bicameral legislature. The Vidhan Sabha is the lower house and corresponds to the Lok Sabha (House of the people) while the Vidhan Parishad is the upper house and corresponds to the Rajya Sabha (Council of States) of the Parliament of India.

While the Union government handles defence, external affairs etc., the state government deals with subjects in the State List, such as public order, police, prisons, public health, agriculture, local government, land, and fisheries, etc.

Income for the Union government is from customs duty, excise tax, income tax etc., while state government income comes from State GST (SGST), State excise duty (on liquor and related items), stamp duty and registration fees, land revenue, and vehicle tax, etc. After the implementation of GST, several state-level indirect taxes—such as sales tax (VAT on goods, except petroleum products and alcohol), entertainment tax (except those levied by local bodies), entry tax, and luxury tax—were subsumed into the Goods and Services Tax (GST) system.

The Sarkaria Commission was set up to review the balance of power between states' and the Union governments. The Union government can dissolve a state government in favour of President's rule if necessary, subject to certain conditions, as ruled by the Supreme Court of India in S. R. Bommai v. Union of India. It is for 5 years only.