Starting this week, our lecture series will focus exclusively on the Prelim examination that are to be held on 23rd August. This week we’ll focus on the 14th Finance Commission recommendations.
Article 280 of the Indian Constitution says that the President shall constitute a Finance Commission and that it shall be the duty of the Finance Commission to make recommendations to the President as to -
• The distribution between the union and the states of the net proceeds of taxes which are to be, or may be, divided between them and the allocation between the states of the respective shares of such proceeds.
• The principles which should govern the grants in aid of the revenues of the states out of the Consolidated Fund of India.
• The measures needed to augment the Consolidated Fund of a state to supplement the resources of the Panchayats and the Municipalities in the state on the basis of the recommendations made by the state Finance Commission.
• Any other matter referred to the Commission by the President.
The 14th Finance Commission (FC-XIV) was constituted by the President on January 2nd, 2013 to make recommendations for the period 2015-20. Dr. Y. V. Reddy was appointed the Chairman of the Commission. Ms. Sushma Nath, Dr. M. Govinda Rao, Prof Abhijit Sen and Dr. Sudipto Mundle were appointed full time Members.
FC-XIV recommendations changed the Tax Devolution landscape of India. Moreover, the FC-XIV recommended GST, Disaster Management and Fiscal Deficit among others . All these areas are covered under the Prelims as well as the Mains syllabus under Economics and GS Paper II & III respectively. UPSC has already asked a question about FC-XIII in 2013 Mains and this year questions about FC-XIV can be expected in the Prelims as well as the Mains.
What were the major recommendations of FC-XIV other than 42% Tax Devolution for the states? What were the additional Terms of Reference (ToR)? What formula did FC-XIV adopt for Horizontal Devolution and how was it different from FC-XIII? What did FC-XIV say about Disaster Management, GST and Fiscal Consolidation?
We believe that our Current Affairs Lecture Series can help IAS aspirants prepare for CSE in a manner which the UPSC examination requires. Please note that for any further queries or to discuss how to align your preparation strategy as per UPSC requirements (also with respect to CSAT), please feel free to write us on targetias@byjusclasses.com
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IAS Preparation - Current Affairs: Finance Commission Recommendations | |
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