UPSC Exam  >  UPSC Notes  >  Indian Polity for UPSC CSE  >  GS2 PYQ (Mains Answer Writing): 14th Finance Commission

GS2 PYQ (Mains Answer Writing): 14th Finance Commission | Indian Polity for UPSC CSE PDF Download

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

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

The document GS2 PYQ (Mains Answer Writing): 14th Finance Commission | Indian Polity for UPSC CSE is a part of the UPSC Course Indian Polity for UPSC CSE.
All you need of UPSC at this link: UPSC
117 videos|600 docs|214 tests

Up next

FAQs on GS2 PYQ (Mains Answer Writing): 14th Finance Commission - Indian Polity for UPSC CSE

1. What is the 14th Finance Commission?
Ans. The 14th Finance Commission was a constitutional body in India established to make recommendations on the distribution of financial resources between the central government and the state governments. It was constituted for the period from 2015 to 2020.
2. What were the objectives of the 14th Finance Commission?
Ans. The primary objectives of the 14th Finance Commission were to assess the financial needs of the central and state governments, recommend the sharing of tax revenues between them, suggest measures to improve fiscal discipline, and propose any other matter related to fiscal matters referred to it by the President of India.
3. What were the key recommendations of the 14th Finance Commission?
Ans. The 14th Finance Commission made several key recommendations, including increasing the share of tax devolution to states from the divisible pool of taxes from 32% to 42%, providing a higher weightage to demographic factors in the distribution of funds, and granting grants-in-aid to local bodies.
4. How did the recommendations of the 14th Finance Commission impact the state governments?
Ans. The recommendations of the 14th Finance Commission significantly increased the financial resources available to the state governments. With the increased share of tax devolution, states had more autonomy in deciding how to allocate and spend their funds, leading to greater fiscal empowerment and flexibility in implementing their development programs.
5. What was the significance of the 14th Finance Commission in India's fiscal federalism?
Ans. The 14th Finance Commission played a crucial role in strengthening India's fiscal federalism. By increasing the share of tax devolution to states and giving them more financial autonomy, it aimed to promote cooperative federalism and empower state governments in their decision-making processes. This was a significant shift towards a more decentralized fiscal structure in the country.
117 videos|600 docs|214 tests
Download as PDF

Up next

Explore Courses for UPSC exam

How to Prepare for UPSC

Read our guide to prepare for UPSC which is created by Toppers & the best Teachers
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev
Download the FREE EduRev App
Track your progress, build streaks, highlight & save important lessons and more!
Related Searches

pdf

,

shortcuts and tricks

,

Exam

,

Objective type Questions

,

Important questions

,

GS2 PYQ (Mains Answer Writing): 14th Finance Commission | Indian Polity for UPSC CSE

,

GS2 PYQ (Mains Answer Writing): 14th Finance Commission | Indian Polity for UPSC CSE

,

MCQs

,

ppt

,

video lectures

,

mock tests for examination

,

Semester Notes

,

past year papers

,

Sample Paper

,

Previous Year Questions with Solutions

,

Viva Questions

,

Summary

,

Extra Questions

,

Free

,

study material

,

practice quizzes

,

GS2 PYQ (Mains Answer Writing): 14th Finance Commission | Indian Polity for UPSC CSE

;