Topic: Parliament and State legislatures—structure, functioning, conduct of business, powers & privileges and issues arising out of these.
3. While fiscal federalism in India has a long history, its practice has grown increasingly opaque over the years. Serious attention is required to improve its principles and practices. Analyse. (250 words)
Difficulty level: Tough
Reference: The Hindu
Why the question:
On May 19, in Union of India vs Mohit Minerals, the Supreme Court of India delivered a ruling which is likely to have an impact far wider than what the Centre might have imagined when it brought the case up on appeal.
Key Demand of the question:
To write about the various issues regarding fiscal federalism in India and measures needed to rectify it.
Directive word:
Analyse – When asked to analyse, you must examine methodically the structure or nature of the topic by separating it into component parts and present them in a summary.
Structure of the answer:
Introduction:
Begin by defining fiscal federalism in India.
Body:
First, give a brief about the development of fiscal federalism in India since independence.
Next, write about the various issues with respect to fiscal federalism in India – opacity, GST issues, FRMBA, impact of the pandemic etc.
Next, write about the measures needed to rectify the above.
Conclusion:
Conclude with a way forward.
