Topic: 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.
3) Examine the impact of the recommendations of the Fourteenth Finance Commission. (250 Words)
Why this question?
As 15th Finance Commission is given terms of reference and is set to prepare its recommendations, impact of 14th FC can be asked in exam. Important question for Mains – 2018.
Key demand of the question:
Direct question – just examine impact of 14th FC.
Examine: Refer the given link, extract relevant information and present it (categorise them). No need to provide your opinion.
Structure of Answer:
In the introduction write in 2-3 lines how Finance Commissions have impacted fiscal federalism and why 14th FC impact is important.
Briefly define mandate of FC and constitutional background.
In the body, divide answer into TWO main categories( central transfers, Social sector expenditure) and within them write about impacts – both positives and negatives.
In the conclusion, write in 1-2 lines on 15th FC and suggest that it would address shortcomings of previous FC recommendations.