Question Q.5GS2GS2

The recommendations of the 15th Finance Commission have enabled the States to improve their fiscal conditions.' Comment. (10 marks, 150 words)

Main Body

The 15th Finance Commission under Act 280 recommended devolution of finances from central to state for upholding fiscal federalism

Recommendations of 15th F.C.:

141% devolution from central pool of taxes to states

2Performance based grants rewarding outcomes by promotes competitiveness among states

3Outcome based allocations under sector specific grants

(a) Health outcomes evaluated for further devolution

4Ecological assessment based metric to provide for environmental justice

(as focus covers - one of the criteria enabled states improvement of fiscal conditions)

Yet No!

the grants (41%).The devolution to total bodied

horizontal devolution merge (Article assortion devolution

to states strengthened attached)

fiscal condition.

performance basedlagged status

grants incentivised reinforced (because

states for better of lack of fund

performance could not invest)

population based grantsdemographic discipline punished (eg Kerala Tamil Nadu)

allowed states like Bihar, UP to invest more.

15-FC did deliver on its promises to lage extent setting ground for 16th finance commission.

164 words11 paragraphs

Conclusion

15-FC did deliver on its promises to large extent setting ground for 16th finance commission.

15 words

Examiner score

0.8/10

Open original scan

Page 11

Topper

DIVYA

AIR 1822025

Subject & Paper

GS2GS2

Topic

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

Centre-State Financial Relations

15th Finance Commission Recommendations

Writing Stats

179

Total words

Paragraphs

analytical

Tone