The Finance Commission and public finance in Kerala.
The Finance Commission and public finance in Kerala.
Current Affairs Daily Articles & Editorials
La Excellence IAS Academy | April 1, 2024 | Indian Polity
| Syllabus: GS-II; Subject: Polity; Topic: Federalism. Issue: Financial devolution. |
Context: Asymmetric fiscal rules in Kerala spark wider debate on Centre-State financial relations.
ConcernsCConcerns:
- Discussion focuses on debt-deficit dynamics, crucial in Centre-State financial relations.
- Volatility in intergovernmental fiscal transfers.
- Fifteenth Finance Commission’s tax transfer formula raises debate on equity versus efficiency.
- Negotiations with Sixteenth Finance Commission critical for specific-purpose transfers addressing State-specific issues.
Prelims Connect:(Institutions in news)
| Finance Commission:
ü Constitutional body advising on tax revenue distribution among Union and States. ü Constituted by the President under Article 280 of the Constitution. ü Mandated to recommend: o Distribution of tax proceeds between Union and States. o Principles for grants-in-aid to States from Consolidated Fund. o Measures to enhance State resources for local bodies. o Other financial matters referred by the President. ü Composition: A Chairman and four members appointed by the President. ü Tenure determined by the President, with eligibility for reappointment. ü Recommendations not binding on the government.
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Source: The Hindu
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