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Finance Commission Grants to Cities Remain Critically Limited Why in the News ? Debate has emerged over the 16th Finance Commission’s recommendations on urban local body (ULB) funding, as transfers to cities remain extremely low despite urban centres generating a large share of India’s GDP and government revenues, raising concerns about fiscal autonomy and federalism. …
Read MoreSixteenth Finance Commission Analysis Syllabus GS 3: Indian Economy Why in the News? Recently, the Sixteenth Finance Commission’s recommendations on tax devolution, grants, and fiscal transfers have triggered debate over federal balance, State finances, cesses, surcharges, and equity in Centre-State financial relations. Introduction The Sixteenth Finance Commission has played an important role in shaping fiscal …
Read MoreFISCAL FEDERALISM AND THE 16TH FINANCE COMMISSION SHIFT Syllabus: GS Paper – 2 Federalism Co-operative Federalism GS Paper -3 Mobilization of Resources WHY IN THE NEWS? The Sixteenth Finance Commission has recommended a revised framework for sharing India’s divisible tax pool for 2026–31, introducing efficiency-linked criteria and eliminating revenue-deficit grants. This marks a significant shift …
Read MoreIntroduction The Finance Commission in India is a constitutional body responsible for allocating financial resources between the central government and the States. It promotes fiscal stability, fiscal autonomy for States, and the equalization of public services. Established under Article 280 of the Indian Constitution, it operates on a five-year cycle, impacting fiscal relations significantly and …
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