AT

ADITYA TALWARAIR 270· 2025

Question 5GS2GS2

The 15th Finance Commission setup under Article 280 has acted as the 'leading wheel' of fiscal federalism.

Open scan (p.15)

Introduction

The 15th Finance Commission setup under Article 280 has acted as the 'leading wheel' of fiscal federalism.

17 words

Main Body

Enabled states to Improve

1Strengthened performance based incentives for states eg 25(J) allocation criteria for fiscal and tax effort
2Strengthened need for better outcomes among the performance on demography eg (15(J) for Demographic performance
3Consultation for devolution to Panchayat Raj institution,
4Better use of leverage to award a higher devolution - (41(J)

Challenges in empowerment

Challenges in empowerment:

1Lower contribution towards regional equity and performance eg 'High states with 39.5%' of population get start 41%. of funds
2Lack of incentives for performance eg 'Bihar got 10%' of funds, while 'Kerala got 1.9%'
3Problematic cases and surcharge eg 'Actual devolution is just 29%'
4Opposition for creation of 40% based criteria on population.

The 16th Finance Commission under Arvind Panagriya has a task ahead to provide performance push as well as per capita equity.

140 words11 paragraphs

Conclusion

The 16th Finance Commission under Arvind Panagriya has a task ahead to provide performance push as well as per capita equity.

21 words

  • Identifies Finance Commission role
  • Mentions performance-based mechanisms
  • References specific criteria
  • Clear structure
  • Identifies implementation challenges
  • Cites specific examples
  • Mentions equity vs performance tension
  • Critical perspective

Topper

ADITYA TALWAR

AIR 2702025

Subject & Paper

GS2GS2

Topic

Federal Structure - Functions, Responsibilities, Devolution of Powers and Finances

Centre-State Financial Relations

Finance Commission and fiscal federalism

Writing Stats

178

Total words

11

Paragraphs

Critical and evaluative

Tone