QUESTION 14
GS2
15 marks
Examine the evolving pattern of Centre-State financial relations in the context of planned development in India. How far have the recent reforms impacted the fiscal federalism in India?
WRITE IN
11 min
250 words
What the examiner wants
Examine how Centre–State finances changed from the planning era to now, and how far recent reforms affected fiscal federalism.
ExamineGo into the details, test each point against evidence, and conclude on what it shows.
Demand-wise check
- 1Planning era: Planning Commission grants (Gadgil formula) alongside Finance Commission transfers≈65 words
- 2Recent reforms: NITI Aayog (2015), 14th FC raised devolution to 42%, 15th FC 41%, GST (2017), end of GST compensation (2022), cesses and surcharges, borrowing limits, special assistance for capital expenditure≈65 words
- 3Impact: more untied funds but less fiscal autonomy; disputes (Kerala v Union on borrowing)≈65 words
Open in about 30 words and close in about 30.
Answer plan
Planning eraPost-2014 reformsImpact on autonomyDisputesConclusion
Where marks usually go
- Not covering the planning era
- No figures on devolution
Draw this
- Timeline with devolution percentages
Value addition
- DataThe 14th Finance Commission raised states' share of the divisible pool from 32% to 42%; the 15th set it at 41%.Finance Commission reports
- CaseState of Kerala v. Union of India (2024) on borrowing limits was referred to a Constitution Bench.Supreme Court of India, 2024
Mapped topper copies
Reviewed public-source references related to this PYQ. Same-syllabus references are labelled separately.
- Alfred Thomas · Page 9 ↗Reviewed PYQ reference
- Shakti Dubey · AIR 1 · Page 23 ↗Reviewed PYQ reference
- Akash Kumar · AIR 101 · Page 3 ↗Same syllabus reference
- Shakti Dubey · AIR 1 · Page 29 ↗Same syllabus reference
Links open original public sources. MainsBuddy does not host these answer sheets.
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