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) Fiscal federalism is the economic counterpart to political federalism. Discuss with suitable examples.(250 words)
Why this question:
The article discusses in detail how Fiscal federalism is the economic counterpart to political federalism. It provides for a detailed assessment of Fiscal federalism in India , its link with political federalism and the challenges being faced by it in India.
Key demand of the question:
The answer must explain in detail what is fiscal federalism, explain how it is counterpart to political federalism, how are the two different? On is expected to explain with recent examples along with features of constitution that requires highlighting.
Discuss – This is an all-encompassing directive – you have to debate on paper by going through the details of the issues concerned by examining each one of them. You have to give reasons for both for and against arguments.
Structure of the answer:
Begin with what you understand by Fiscal federalism.
- What is fiscal federalism in India? context.
- Present status
- Link between Fiscal federalism and political federalism – the constitutional angle.
- What are the associated concerns and challenges
- Way forward.
Conclude with importance of federalism and its role in Indian set up, take cues from the article.