The Finance Commission ensures equitable financial distribution between the central and state governments, promoting balanced development and fiscal federalism. Examine.
Kartavya Desk Staff
Topic: Functions and responsibilities of the Union and the States, issues and challenges pertaining to the federal structure, devolution of powers and finances up to local levels and challenges therein.
Topic: Functions and responsibilities of the Union and the States, issues and challenges pertaining to the federal structure, devolution of powers and finances up to local levels and challenges therein.
3. The Finance Commission ensures equitable financial distribution between the central and state governments, promoting balanced development and fiscal federalism. Examine. (250 words)
Difficulty level: Moderate
Reference: Indian Express , Insights on India
Why the question: The Finance Commission is a constitutional body instituted by the Union government once in five years without any transparent discussion on selecting its members and its terms of reference (ToR). Key Demand of the question: To write about the role of Finance Commission in fiscal federalism in the country. Directive word: Examine – When asked to ‘Examine’, we must investigate the topic (content words) in detail, inspect it, investigate it and establish the key facts and issues related to the topic in question. While doing so we should explain why these facts and issues are important and their implications. Structure of the answer: Introduction: Begin the giving the context of article 280. Body: In the first part, write about the role of the Finance Commission – financial needs and capacities of the central and state governments, promoting economic development, and ensuring that resources are distributed equitably for the benefit of the entire nation. In the next part, mention the major limitations of the commission. Conclusion: Conclude with a way forward to overcome the limitations.
Why the question:
The Finance Commission is a constitutional body instituted by the Union government once in five years without any transparent discussion on selecting its members and its terms of reference (ToR).
Key Demand of the question:
To write about the role of Finance Commission in fiscal federalism in the country.
Directive word:
Examine – When asked to ‘Examine’, we must investigate the topic (content words) in detail, inspect it, investigate it and establish the key facts and issues related to the topic in question. While doing so we should explain why these facts and issues are important and their implications.
Structure of the answer:
Introduction:
Begin the giving the context of article 280.
In the first part, write about the role of the Finance Commission – financial needs and capacities of the central and state governments, promoting economic development, and ensuring that resources are distributed equitably for the benefit of the entire nation.
In the next part, mention the major limitations of the commission.
Conclusion:
Conclude with a way forward to overcome the limitations.