Question 14GS2GS2

(15 FC) 15th Finance Commission has used new criteria to being devolution rates to 41% for state.

Main Body

15th Finance Commission has used new criteria to bring devolution rates to 41% for state.

Enabled states to improve fiscal condition:

1Reduced fiscal deficit (with diagram showing Target achieved: 3.7% vs 2024 RBT)

2Reduced debt to GDP to 28% [RBT]

3Reduced dependence on grants - 1.95 to 1.65 lakh crore

4Improved metrics

Mizoram - highest literacy rate

Telangana - pursued national government state rate

Delhi, Goa - per capita income was than double of national

But still struggles continue:

i) State Health report (REP) delayed lagged - state, Kerala, West Bengal

ii) Contention about the criteria of 15th FC itself

Some states 'penalized' for population centre

iii) Increasing expenses of states

by Core centred-sponsored schemes [?]

Power sector in loss (CST delay in devolution [PAC report]

Way forward - 16 UMC must have improved criteria:

(ii) Timely payments

(iii) NITI saying to assist states in fiscal management.

Hence, ladies must ensure all states develop equally for 'Satta Sah, Satta Vikas'.

169 words5 paragraphs5 bullet points

Conclusion

Hence, ladies must ensure all states develop equally for 'Satta Sah, Satta Vikas'.

13 words

Examiner score

1/10

Open original scan

Page 15

Topper

HARSHDEEP SAGAR

AIR 2992025

Subject & Paper

GS2GS2

Topic

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

Centre-State Financial Relations

Finance Commission and Resource Devolution

Writing Stats

182

Total words

Paragraphs

Bullets