Question 11GS2GS2
In what ways are the terms of reference of the 16th Finance Commission different from that of the previous Finance Commissions? Despite increasingly progressive devolution by subsequent Finance Commissions, examine the factors that propel economic disparities across various States.
Main Body
Finance Commission is constituted every 5 years one or whenever prudent modify to help balance the uphill of fiscal federalism. (Article 280) Recently 15th F.C was constituted under the head of Atharind I to recommend on following items of reform
Increasingly progressive devolution by FC: 13th F.C38.I. of net tax proequedly 14th F.C42.1. of net tax proequedly 15th F.C44. of ... (cut off) (4.1: was divulged for U.T's J&K and ladakh) Factor that propel economic disparity: 1) Population difference: Northern states laik behind southern with 'population control' & here receive higher funds. TCE T.F.R of Bihar >, all ≥ 2.1b 2) Area of States: larger states receive higher funds compared poorer & poorer state TCE Arunachal.
3Reduction in states revenue with GST implementation: effect on state financial power 4) Imbalanced regional development - Pharosmen of rich state becoming richer & poor state poorer TCE Holded North east region 5) Lack of manufacturing centre: Many states are the deprived in agriculture with disputed employment; poorer wage, itz Special grants as performance may towards special states' infrastructure & connectivity If states intext may forward
189 words1 paragraphs
Answer continues on next page
Topper
Sachin B.G
2024
Subject & Paper
GS2GS2
Topic
Federal Structure - Functions, Responsibilities, Devolution of Powers and Finances
Centre-State Financial Relations
Finance Commission and fiscal federalism
Writing Stats
189
Total words
1
Paragraphs