Topic: issues and challenges pertaining to the federal structure
3. What is fiscal federalism? Enhancing fiscal federalism in India requires a comprehensive approach that addresses imbalances, encourages cooperation, and empowers states to manage their finances effectively. Examine. (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 and mentioned as part of Mission-2024 Secure timetable.
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:
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.
