Topics Covered:
- Appointment to various Constitutional posts, powers, functions and responsibilities of various Constitutional Bodies.
Permanent status to Finance Commission
What to study?
For Prelims and Mains: About FC- roles, objectives, functions, criteria used and need for reforms.
Context: RBI governor bats for permanent status to Finance Commission.
Need for permanent status:
Finance commissions have over the past several decades adopted different approaches with regard to principles of tax devolution, grants to be given to states and fiscal consolidation issues. In other words, there has to be continuity and change between finance commissions.
There is a need to ensure broad consistency between Finance Commissions so that there is some degree of certainty in the flow of funds, especially to the states. This has become even more critical in the post GST scenario.
If it is given permanent status, the Commission can function as a leaner entity in the intervening period till the next Finance Commission is set up in a full-fledged manner. During the intervening period, it can also address issues arising from implementation of the recommendations of the finance commission.
Sources: livemint.
