Tag: cesses and surcharges

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Examine the constitutional role of the Finance Commission in maintaining fiscal balance within the Union. Evaluate the emerging challenges to its effectiveness. Suggest measures to strengthen the institution.

Topic: Appointment to various Constitutional posts, powers, functions and responsibilities of various Constitutional Bodies Q3. Examine the constitutional role of the Finance Commission in maintaining fiscal balance within the Union. Evaluate the emerging challenges to its effectiveness. Suggest measures to strengthen the institution. (15 M) Difficulty Level: Medium Reference: TH Why the question The Finance …

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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.

Topic: Issues and challenges pertaining to the federal structure, devolution of powers and finances Q2. 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) …

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Restoring Fiscal Space for the States

Syllabus: Economy   Source:  TH Context: The abolition of the GST compensation cess marks a turning point in Centre–State fiscal relations. Several States have raised concerns over the loss of fiscal autonomy and revenue stability, demanding reforms in India’s tax-sharing mechanism to strengthen cooperative federalism. About Restoring Fiscal Space for the States: Fiscal Policy Evolution …

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