Topic: issues and challenges pertaining to the federal structure
3. Fiscal federalism is crucial for the smooth functioning of a federal system of government. The Indian government should take steps to address the various issues in fiscal federalism and implement measures to enhance the autonomy of States in financial matters. Discuss. (250 words)
Difficulty level: Easy
Reference: Insights on India
Why the question:
The question is part of the static syllabus of General studies paper – 2.
Key Demand of the question:
To write about the evolution of fiscal federalism in India, issues in it and measures needed to overcome the issues.
Directive:
Discuss – This is an all-encompassing directive – you must debate on paper by going through the details of the issues concerned by examining each one of them. You must give reasons for both for and against arguments.
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.
