QUESTION 3
GS2
10 marks
How have the recommendations of the 14th Finance Commission of India enabled the States to improve their fiscal position?
WRITE IN
7 min
150 words
What the examiner wants
Explain how the 14th Finance Commission's recommendations improved the fiscal position of states.
ExplainMake clear how and why it happens: causes, process, and an example for each point.
Demand-wise check
- 1Key change: states' share in the divisible pool raised from 32% to 42%≈30 words
- 2More untied funds; new criteria (forest cover 7.5%, 2011 population)≈30 words
- 3Revenue deficit grants to 11 states; grants to local bodies≈30 words
- 4Limits: cut in centrally sponsored scheme shares, rise in cesses and surcharges outside the pool≈30 words
Open in about 20 words and close in about 20.
Answer plan
ContextKey recommendationsEffect on state fiscal spaceLimitsConclusion
Where marks usually go
- Listing recommendations without showing the effect on state finances
- Ignoring the counter-effect of cesses
Draw this
- Bar: devolution 32% (13th FC) → 42% (14th) → 41% (15th)
Value addition
- DataThe 14th FC (2015–20) raised states' share from 32% to 42%, the largest jump ever; the 15th FC set it at 41% after J&K's reorganisation.14th and 15th Finance Commission reports
- DataCesses and surcharges, which are not shared with states, rose to about a fifth of the Centre's gross tax revenue.Union Budget documents / 15th FC report
Mapped topper copies
Reviewed public-source references related to this PYQ. Same-syllabus references are labelled separately.
- Dsk Prachet · Page 11 ↗Reviewed PYQ reference
- Ankit Jarwal · Page 11 ↗Reviewed PYQ reference
- Aryan Sirsikar · Page 11 ↗Reviewed PYQ reference
- Akash Kumar · AIR 101 · Page 13 ↗Same syllabus reference
Links open original public sources. MainsBuddy does not host these answer sheets.
Next: plan for one minute, write it in 7 minutes, then get it checked.