Question 13GS2GS2

संविधान के अनुच्छेद 293 के तहत राज्यों की उधार लेने की शक्तियों पर लगाए गए प्रतिबंध, यथापि संवैधानिक रूप से वैध हैं, लेकिन वे राज्यों की राजनीय स्वायत्ता को बाधित कर सकते हैं और सहकारी संघवाद को प्रभावित कर सकते हैं। हाल ही में पंजाब संकट के आलोक में विचार कीजिए। (उत्तर 250 शब्दों में दीजिए) The restrictions imposed under Article 293 of the Constitution on State borrowing powers, though constitutionally valid, may hinder fiscal autonomy of States and disrupt cooperative federalism. Discuss in the light of recent developments. (Answer in 250 words)

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Answer Strengths Gaps Keywords

Introduction

Under Article 293, Center can put restrictions on borrowing powers of states.

12 words

Main Body

Under Article 293, Center can put restrictions on borrowing powers of states.

Uredel has recently moved SC to challenge this provision.

Reasons for Art 293:

1Promoting fiscal discipline among states

2Prevent excessive borrowing & potential debt crisis

3Incentivizes states to pay both pending loans

4Enables center to limit levels of public debt

Hindrance on Fiscal Autonomy of States:

1Reduces states power to fund various social schemes

2Seen as encroachment by center on state's powers

3Recent restrictions on Punjab

4States already highly dependent on central devolution of funds by Finance Commission (art 280) by using it against opposition ruled states

1Reduces states power to fund various social schemes

2Seen as encroachment by center on state's powers

3Recent restrictions on Punjab

4States already highly dependent on central devolution of funds by Finance Commission (art 280) by using it against opposition ruled states

Disruptions of cooperative federalism:

1Leading to increased disputes between centre & states

2States vary in over centralization of powers

3States resorting to off-budget borrowings by Finance Commission (art 280) by using it against opposition ruled states

4West Bengal govt accused center of policing powers by using it against opposition ruled states

Way Forward:

1Constitution of Interstate council (art 263) to address disputes (Sorkarian commission)

2Creation of a fiscal council on lines of GST council (to promote fiscal federalism) (Parliamentary standing committee)

3Investing share of states in net proceeds of art to 50% in 16th FC

4Intersecting control grants to states under Art 282 (Puncit's committee)

Balancing fiscal autonomy of states & fiscal discipline is crucial to ensure sustainable & inclusive growth in India

283 words7 paragraphs

Conclusion

Balancing fiscal autonomy of states & fiscal discipline is crucial to ensure sustainable & inclusive growth in India

18 words

Comprehensive way forward with multiple solutions

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Page 31

Topper

Aryan Yadav

AIR 31

Subject & Paper

GS2GS2

Topic

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

Centre-State Financial Relations

Article 293 and State Borrowing Powers

Writing Stats

313

Total words

Paragraphs