Role of Finance Commission in Centre-State Financial Relations **1. Distribution of Taxes: The Finance Commission (FC) recommends the distribution of central taxes between the Centre and States. For example, the 15th Finance Commission (2020-2025) recommended a 41% share for states from central taxRead more
Role of Finance Commission in Centre-State Financial Relations
**1. Distribution of Taxes:
- The Finance Commission (FC) recommends the distribution of central taxes between the Centre and States. For example, the 15th Finance Commission (2020-2025) recommended a 41% share for states from central tax revenues, promoting equitable distribution.
**2. Grants-in-Aid:
- The FC advises on grants-in-aid to states based on their needs. The 15th Finance Commission allocated specific grants for health and education, addressing regional disparities.
**3. Fiscal Responsibility:
- It monitors fiscal responsibility and advises on measures to improve state finances. Recent recommendations include measures for fiscal consolidation and debt management.
**4. Challenges and Criticisms:
- The FC’s recommendations may face criticism for inadequately addressing regional imbalances or failing to consider emergent needs, such as those highlighted during the COVID-19 pandemic.
**5. Impact of Recommendations:
- The FC’s recommendations influence budget allocations and fiscal policies, impacting Centre-State financial relations. For instance, the recent recommendations have sparked debates on their adequacy in addressing the challenges faced by states.
The Constitution of India and the Constitution of the United States share some similarities, but there are also significant differences. Here are some key differences: 1. Length: The Indian Constitution is the longest written constitution in the world, with 397 articles, while the US Constitution haRead more