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Garv GargAIR 192· 2025

Question Q.14GS2GS2

How is the 'vertical' and 'horizontal' devolution of taxes to the states decided? Highlighting the concerns raised by some states regarding the devolution of taxes, suggest corrective measures.

Open scan (p.32)

Introduction

Recent cases of special packages for legal alien states have ignited debate over devolution of net proceeds of taxes with state.

21 words

Main Body

How are vertical and horizontal devolution of taxes decided.

(I) Vertical

i) CAG audits revenue net proceeds of advise and tags.

ii) Union finance commisioner consider fiscal effect, population etc.

iii) Unequal disclaimed share got entire her 19% share.

(eg) ISFc gave entire 19% share.

iii) Already apvsed scheme also differentiate for ISCatgogis for state.

(Oneome raised)

(I) Over emphasis on population under Indian state acts for more share against northern states based.

74 words1 paragraphs

Conclusion

Or there population effect

4 words

Answer continues on next page
Examiner score
0.3/10

Open original scan

Page 32

Topper

Garv Garg

AIR 1922025

Subject & Paper

GS2GS2

Topic

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

Centre-State Financial Relations

Vertical and Horizontal Devolution of Taxes

Writing Stats

99

Total words

1

Paragraphs

analytical

Tone