Analyze the Comptroller and Auditor General of India’s Constitutional Position. (125 Words) [UPPSC 2018]
Functions of the Finance Commission and Its Emerging Role in Fiscal Federalism 1. Functions of the Finance Commission: Distribution of Resources: The Finance Commission is responsible for recommending the distribution of tax revenues between the Centre and the States, ensuring a fair allocation of rRead more
Functions of the Finance Commission and Its Emerging Role in Fiscal Federalism
1. Functions of the Finance Commission:
- Distribution of Resources: The Finance Commission is responsible for recommending the distribution of tax revenues between the Centre and the States, ensuring a fair allocation of resources. For instance, the 15th Finance Commission recommended a 41% share of central taxes to states for the period 2021-26.
- Grants and Assistance: It determines the grants-in-aid for states in need, helping to address fiscal imbalances. This includes special grants for larger states or those with specific needs, such as the Northeastern states.
- Fiscal Management Recommendations: The Commission advises on fiscal management and debt management policies. It suggests measures to improve state fiscal health and reduce disparities.
2. Emerging Role in Fiscal Federalism:
- Strengthening Federal Structure: The Finance Commission plays a crucial role in strengthening fiscal federalism by ensuring a fair and balanced distribution of resources, which is vital for state autonomy and effective governance.
- Recent Example: The 15th Finance Commission emphasized performance-based incentives for states, such as rewarding states that implement tax reforms and improve tax collection efficiency. This approach aims to promote fiscal responsibility and efficiency.
- Addressing Emerging Challenges: With growing regional disparities and increased expenditure needs, the Finance Commission’s recommendations on equitable resource distribution and special assistance help states manage economic and social challenges, ensuring a more inclusive development.
Conclusion:
The Finance Commission’s functions are essential in resource distribution, grant allocation, and fiscal management. Its evolving role in fiscal federalism addresses regional disparities and promotes fiscal responsibility, crucial for maintaining a balanced Centre-State fiscal relationship and inclusive growth.
Constitutional Position of the Comptroller and Auditor General (CAG) of India 1. Appointment and Tenure: The CAG is appointed by the President of India under Article 148 of the Constitution, and serves a fixed tenure until the age of 65. For example, Girish Chandra Murmu, appointed in 2020, is a recRead more
Constitutional Position of the Comptroller and Auditor General (CAG) of India
1. Appointment and Tenure: The CAG is appointed by the President of India under Article 148 of the Constitution, and serves a fixed tenure until the age of 65. For example, Girish Chandra Murmu, appointed in 2020, is a recent CAG.
2. Independence: The CAG operates with independence to ensure impartiality in auditing government accounts. Removal requires a process similar to that for Supreme Court judges, ensuring security of tenure.
3. Powers and Functions: The CAG audits the accounts of the Union and State Governments, including public sector enterprises. The office’s reports are tabled in Parliament and state legislatures. For instance, the CAG’s 2021 report on the COVID-19 vaccination procurement highlighted discrepancies and led to discussions on policy improvements.
Conclusion: The CAG’s constitutional position ensures it operates independently, with substantial powers to audit and report on government finances, thereby contributing to transparency and accountability in public administration.
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