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

Finance Commission is established Under Article 280 of Constitution, appointed by President of India. Thus creating avenue for fiscal federalism in India. Recommendations of 15th FC have improved fiscal position of states in following ways: (1) The items of revenue reduced allocation for based on various work, forms, population coteroi which distributed liabilities based on prognostic norms. (2) The debt vertical devolution MVD of taxes increased resources for states, which i.1. necdn debt from 14th FC was in respect to creation of 21k and lodakh as UT. (3) Other grants give extra resources to states, thus improving fiscal space. How ever 15FC was withheld due to certain factors: (1) The extra grants recommended were tied in nature, they binding space for localized expenditure. (2) It reflected 'one size fits' appraid in distributing funds. (3) Non consideration of 'loss due to CGST' further battled fiscal space of state in devolution of taxes. (4) Recommentary acture, logic of expendre, rigt items of reference are other challenges maxing 15FC. With increasing flexibility in granted fugorities are better up appraich, the recommendaton of 15th FC and 16th FC future can have potential to enable the states to improve their fixed landway.

India adopted democratic socialism where private sector also contribute to overall socio-economic development of country. Industries contribute to socio-economic development in following ways: (1) Companies are legally mandated under Companies Act, CSR activity to take responsibility for social development. (2) They provide funds for critical developed projects e.g. Water resource project in eastern rajasthan. (3) Business associations contribute through planning and expenditure they help in managing social resources e.g. Aforestation drives. (4) Free education, health benefits for are other avenue of redistributive justice. However challenges field and depending, discriminatory policies etc. need to be checked so that they can effectively contribute to overall inclusive growth.