The recommendations of the 15th Finance Commission have enabled the States to improve their fiscal conditions.' Comment. (10 marks, 150 words)
Main Body
The 15th Finance Commission under Act 280 recommended devolution of finances from central to state for upholding fiscal federalism
Recommendations of 15th F.C.:
(a) Health outcomes evaluated for further devolution
(as focus covers - one of the criteria enabled states improvement of fiscal conditions)
Yet No!
the grants (41%). → The devolution to total bodied
horizontal devolution merge (Article assortion devolution
to states strengthened attached)
fiscal condition.
performance based → lagged status
grants incentivised reinforced (because
states for better of lack of fund
performance could not invest)
population based grants → demographic discipline punished (eg Kerala Tamil Nadu)
allowed states like Bihar, UP to invest more.
15-FC did deliver on its promises to lage extent setting ground for 16th finance commission.
— DIVYA · AIR 182
Conclusion
15 words
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Page 11
DIVYA
Federal Structure - Functions, Responsibilities, Devolution of Powers and Finances
Centre-State Financial Relations
15th Finance Commission Recommendations
179
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11
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analytical
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