Explain how cesses and surcharges alter the effective working of vertical devolution in India. Discuss why this has become a major Centre–State dispute despite an unchanged devolution percentage. Suggest reforms to restore predictability and fairness in fiscal federalism.

 

Q5. Explain how cesses and surcharges alter the effective working of vertical devolution in India. Discuss why this has become a major Centre–State dispute despite an unchanged devolution percentage. Suggest reforms to restore predictability and fairness in fiscal federalism. (15 M)