Question Q.5GS2GS2

The recommendations of the 15th Finance Commission have enabled the States to improve their fiscal conditions.' Comment.

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Answer

Main Body

15th Finance Commission provided for target of 40% of held to TDP relief in undoing fiscal conditions.

Recommendations including:

141% tax devolution - leading to fiscal space for state fiscal management

2Grants in aid and policy grants for easing burden on state of implementation of public programmes

3Provision of interest-free loans from Central Government

However, various states felt the fiscal management due to 15th finance commission.

Tied nature of grants - tied with specific requirements.

(I) Tied nature of grants & tied with specific requirements.

Functions leading to lack of autonomy.

Bring liaise off cuts and emergency o non-shareable - 29% of total devolution.

Resource crunch - due to implementation of welfare programme (20 states missed their targets).

Assignment - discomfort raised by Constitution Class (I) 16th Finance Commission - taken into account concern of aesthetic state.

Way Forward:

(I) FRBM Targets to be achieved

(I) Following fiscal procedure.

There is pressing need for fiscal devolution and decentralisation for effective management of state fiscal wealth.

168 words9 paragraphs

Conclusion

There is pressing need for fiscal devolution and decentralization for effective management of state fiscal wealth. There is pressing need for fiscal devolution and decentralisation for effective management of state fiscal wealth.

32 words

This is a continuation from previous page

Examiner score

0.6/10

Open original scan

Page 11

Topper

DEV-DUDEJAUPSC

AIR 1522025

Subject & Paper

GS2GS2

Topic

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

Centre-State Financial Relations

Finance Commission Recommendations and Impact

Writing Stats

200

Total words

Paragraphs

analytical

Tone