GS2 · 10 marks · 150 words

'The recommendations of the 15th Finance Commission have enabled the States to improve their fiscal conditions.' Comment.

Answered by 4 toppers · CSE 2025

Centre-State RelationsFederalism

Syllabus: 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.

How toppers approached it

From all 4 answers · about 180 words · 75% drew a diagram.

Opening

  • A constitutional or legal provision2 of 4
  • No separate opening2 of 4

Body

  • Points and prose3 of 4
  • Points1 of 4

Close

  • A way forward3 of 4
  • A summary1 of 4

The toppers’ answers

Ujjwal PriyankAIR 10 · CSE 2025 · 122 wordsTheir whole copy

Opening

The 15th finance Commission under N.K. Singh provided for an effective devolution of fund from centre to state as well as grant-in-aid for period 2021-26.

Body · points and prose

The recommendation have enabled state to improve fiscal conditions

  1. Better availability of funds which is about 41% of centre's divisible pool.

  2. Horizontal distribution based on various criteria :

a) Population of 2011, thus ensures funds as per need of region.

b) Ensuring reward for demographic performance. This ensures better share for Southern states of India. c) Ensuring sustainable development ↳ Funds based on Forest and ecology.

(3) Thus, various states have received funds based on their needs and aspiration, not a homogeneous scale.

Diagram
Challenges → 1. Federal tension in opposition-led state → 2. Increase in tied grants to local bodies ↳ reduces autonomy. → 3. demand for cess and Surcharge increased

Close · a summary

The recommendation of 15th finance Commission can be instrumental for fiscal health.

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