Welcome to Sunya IAS, a trusted source for in-depth analysis of UPSC Static and Current Affairs coverage. In today's session, we shall discuss a topic that has consistently been in the news: 15th Finance Commission. The 15th Finance Commission's recommendations, spanning 2021 to 2026, hold significant insights for the fiscal landscape in India. In this lecture, we will examine the Finance Commission's role, its recommendations, and the anticipated questions for UPSC exams.
The Finance Commission (FC) of India serves as an important institution in defining financial relations between the Central government and state governments. Formed on November 27, 2017, the Fifteenth Finance Commission emerged in a transformative move marked by the dissolution of the Planning Commission and the implementation of the goods and services tax (GST). This restructuring has fundamentally reshaped federal fiscal relations in India.
Key Highlights/Aspects:
1. Brief overview on 15th Finance commission: Examine the transformative role of the 15th FC in the India's financial landscape.
2. Composition and tenure: Understand the dynamics of the 15th FC with a detailed look at its composition and the multi-year tenure structure.
3. Terms of reference of 15th FC: Understand the comprehensive terms of reference guiding the 15th FC, outlining its role in shaping financial relations between the Central government and state governments.
4. Parameters for performance based initiatives: Discussion into criteria such as GST implementation, population growth, and flagship scheme execution influencing fund allocation.
5. Recommendations of 15th FC: Gain insights into impactful directives covering vertical and horizontal devolution, grants for local bodies, and more.
6. Issues with Recommendations of 15th FC: Examine critical analyses, including altered weightage for certain criteria and implications for states with diverse profiles.
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