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GS 2 PYQ 2021 (Mains Answer Writing): 14th Finance Commission Notes | Study Indian Polity for UPSC CSE - UPSC

Document Description: GS 2 PYQ 2021 (Mains Answer Writing): 14th Finance Commission for UPSC 2022 is part of Indian Polity for UPSC CSE preparation. The notes and questions for GS 2 PYQ 2021 (Mains Answer Writing): 14th Finance Commission have been prepared according to the UPSC exam syllabus. Information about GS 2 PYQ 2021 (Mains Answer Writing): 14th Finance Commission covers topics like and GS 2 PYQ 2021 (Mains Answer Writing): 14th Finance Commission Example, for UPSC 2022 Exam. Find important definitions, questions, notes, meanings, examples, exercises and tests below for GS 2 PYQ 2021 (Mains Answer Writing): 14th Finance Commission.

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How have the recommendations of the 14th Finance Commission of India enabled the states to improve their fiscal position? (UPSC GS2 2021)

Finance Commission is constituted by the President under Article 280 of the Constitution, mainly to give its recommendations on the distribution of tax revenues between the Union and the States and amongst the States themselves. Recommendations of the 14th Finance Commission, enabling fiscal position of states.

  • Increased devolution to states from the divisible pool of taxes from 32% to 42% [drastic change] States would receive a larger volume of untied funds relative to tied funds. This will enhance the states’ autonomy in deciding their expenditure priorities. 
  • Asked Centre to reduce conditional grant-in –aids to states; 
  • Recommend eight centrally sponsored schemes (CSS) to be delinked from support from the Centre, thus, states sharing a higher fiscal responsibility and autonomy to implement development initiatives. 
  • States got much autonomy in deciding their expenditure priority; this is in the spirit of “balancing wheel of fiscal federalism” 
  • Given due consideration to the fiscal federalism framework in India by devolving a larger amount to local governments.

Topics Covered - Finance Commission, Constitutional Bodies

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