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MMDR Reform Risks Undermining India’s Fiscal Federal Balance Syllabus: GS-2: Government Policies & Interventions GS-3: Industrial Policy Why in the News ? The Mines and Minerals (Development and Regulation) Amendment Act, 2026 has been passed by both Houses of Parliament.The amendment significantly strengthens Union control over mineral and mineral-land taxation, potentially weakening the fiscal position …
Read MoreMines Bill Rekindles Centre-State Federalism Debate Why in the News ? The Mines and Minerals (Development and Regulation) Amendment Bill, 2026 has reignited tensions between the Centre and States over taxation of mineral rights. States fear significant revenue losses, while the Centre argues that excessive levies increase mineral costs, fuel inflation and create uncertainty for …
Read MoreFISCAL FEDERALISM: EFFICIENCY VERSUS EQUITY CONCERNS Syllabus: GS-2: Centre State Fiscal relation Governance Devolution of Power Why in the News? The 16th Finance Commission (FC-16), chaired by Arvind Panagariya, has submitted its recommendations for the period 2026–2031. While retaining the 41% vertical devolution of Central taxes to States, it significantly restructures grants-in-aid, triggering debate over …
Read MoreKerala Faces Fiscal Stress Despite Social Achievements Why in the News ? A recent economic report released by Kerala’s new government highlights the State’s worsening fiscal condition. Despite its strong human development achievements, Kerala faces rising debt, increasing committed expenditure, and low capital investment, raising concerns about long-term economic sustainability and food security. Kerala’s Fiscal …
Read More16th Finance Commission Tilts Balance Towards Centralisation Concerns Syllabus: GS-2: Centre-State Relations ,Indian Constitution ,Co-operative Federalism ,Constitutional Bodies Why in the News ? The 16th Finance Commission (FC) award has sparked debate for allegedly deviating from the long-standing tradition of impartial fiscal federalism. Experts argue that its recommendations disproportionately favour the Centre over States, weaken …
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 MoreREJECT THIS DEVOLUTION PROPOSAL OF THE 16TH FINANCE COMMISSION Syllabus: GS 2: Government organs and their functions Finance Commission Why in the News? The 16th Finance Commission (FC) has recommended deleting the constitutional phrase requiring Union devolution to local bodies to be made “on the basis of the recommendations of State Finance Commissions (SFCs)” under …
Read MoreCentre Defends States’ Tax Devolution Share Why in the News ? The Union Finance Minister clarified in the Lok Sabha that the Centre has fully transferred 41% of the divisible pool of taxes to States as recommended by the 15th Finance Commission, countering Opposition allegations regarding reduced fiscal devolution. Government’s Clarification on Tax Devolution: The …
Read MoreSIXTEENTH FINANCE COMMISSION AND THE FEDERAL BALANCE Syllabus: GS-2: Centre-State Relations, Indian Constitution, Co-operative Federalism, Constitutional Bodies WHY IN THE NEWS? The Sixteenth Finance Commission submitted its recommendations for 2026–31, and the Union government accepted its proposals on tax devolution. Debates have emerged over whether States gained from the Commission’s decisions on vertical and horizontal …
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 …
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