Consequences of subsidies

GS Paper 3 Syllabus: Indian Economy and related issues/ Issues related to Direct and Indirect Farm Subsidies   Source: DTE  Context: A new World Bank report highlights the negative consequences of inefficiently subsidising agriculture, fishing and fossil fuel sectors.   Highlights of the report: Subsidies in the 3 areas (generally considered to bail out economies …

16th Finance Commission

GS Paper 2  Syllabus: Powers, Functions and Responsibilities of various Constitutional Bodies   Source: TH  Context: Soon the government will appoint a Finance Commission to determine how much of the Centre’s tax revenue should be given away to States (the vertical share) and how to distribute that among States (the horizontal sharing formula).   What …