Topic: issues and challenges pertaining to the federal structure
3. A more equitable distribution of resources among states can lead to balanced development across the country. Comment. (250 words)
Difficulty level: Tough
Reference: The Hindu , Insights on India
Why the question:
The article questions whether southern states in India are facing punitive measures due to their relative economic success and examines the issues related to federal fiscal distribution in the country.
Key Demand of the question:
To write about the issues in distribution of resources among states and measures needed to overcome the issues.
Directive:
Comment– here we must express our knowledge and understanding of the issue and form an overall opinion thereupon.
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 – Finance commission criteria, 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.
