Financial centralisation weakens the spirit of decentralised governance. Analyse the constitutional limits of fiscal control by the Union. Examine its consequences for State autonomy. Suggest mechanisms to ensure equitable federal fiscal relations.
Kartavya Desk Staff
Topic: Devolution of powers and finances up to local levels and challenges therein.
Topic: Devolution of powers and finances up to local levels and challenges therein.
Q4. Financial centralisation weakens the spirit of decentralised governance. Analyse the constitutional limits of fiscal control by the Union. Examine its consequences for State autonomy. Suggest mechanisms to ensure equitable federal fiscal relations. (15 M)
Difficulty Level: Medium
Reference: TH
Why the question Tamil Nadu sues Centre in Supreme Court over non-disbursal of ₹2,000-crore education funds. Key Demand of the question The question requires an analysis of constitutional constraints on the Union’s fiscal authority, an examination of how excessive centralisation affects State autonomy, and a discussion of mechanisms to ensure fair and cooperative federal fiscal arrangements. Structure of the Answer: Introduction Briefly mention how India’s quasi-federal structure is tilted fiscally towards the Centre, and why rebalancing is a growing constitutional concern. Body Explain the constitutional limits on fiscal powers of the Union using key articles and commissions. Discuss the impact of centralised control on State autonomy in policy, finance, and development outcomes. Suggest institutional, legal, and cooperative measures to enhance fiscal equity and strengthen federal balance. Conclusion Stress the need to evolve from vertical dependency to horizontal cooperation through transparent, rules-based and participatory fiscal governance.
Why the question Tamil Nadu sues Centre in Supreme Court over non-disbursal of ₹2,000-crore education funds.
Key Demand of the question The question requires an analysis of constitutional constraints on the Union’s fiscal authority, an examination of how excessive centralisation affects State autonomy, and a discussion of mechanisms to ensure fair and cooperative federal fiscal arrangements.
Structure of the Answer:
Introduction Briefly mention how India’s quasi-federal structure is tilted fiscally towards the Centre, and why rebalancing is a growing constitutional concern.
• Explain the constitutional limits on fiscal powers of the Union using key articles and commissions.
• Discuss the impact of centralised control on State autonomy in policy, finance, and development outcomes.
• Suggest institutional, legal, and cooperative measures to enhance fiscal equity and strengthen federal balance.
Conclusion Stress the need to evolve from vertical dependency to horizontal cooperation through transparent, rules-based and participatory fiscal governance.