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5) Finance Commission is tasked with distribution of tax proceeds between Union and states. Recent amendments threaten to subvert it, do you agree? Critically analyse with suitable justifications.(250 words)

Topic:  Structure, organization and functioning of the Executive and the Judiciary; Ministries and Departments of the Government; pressure groups and formal/informal associations and their role in the Polity.

5) Finance Commission is tasked with distribution of tax proceeds between Union and states. Recent amendments threaten to subvert it, do you agree? Critically analyse with suitable justifications.(250 words)

Indianexpress

Why this question:

The question is in the light of recent amendments that were made to the process of distribution of tax proceeds by the Finance commission.

Key demand of the question:

Critically analyse the recent amendments that were made in this context and provide for their effect in distribution of tax proceeds.

Directive:

Critically analyzeWhen asked to analyse, you have to examine methodically the structure or nature of the topic by separating it into component parts and present them as a whole in a summary. When ‘critically’ is suffixed or prefixed to a directive, one needs to look at the good and bad of the topic and give a fair judgment.

Structure of the answer:

Introduction: 

In brief explain the role of finance commission.

Body:

Explain the recent amendments made to the Terms of Reference (ToR) of the 15th Finance Commission (FFC)

The first requires the FFC to examine “whether a separate mechanism for funding of defence and internal security ought to be set up and if so, how such a mechanism should be operationalized”.

Take hints from the article and explain.

Conclusion:

Conclude with way forward.