Vision IAS Weekly Changing Dynamics of Fiscal Federation in India

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Vision IAS Vision IAS Changing Dynamics of Fiscal Federation in India in the understand and analyse the topic.

Vision IAS Changing Dynamics of Fiscal Federation in India
Vision IAS Changing Dynamics of Fiscal Federation in India

Vision IAS Changing Dynamics of Fiscal Federation in India: for UPSC Civil Services Prelims and Mains Examination 2020.

A tussle has ensued between the Centre and States as there was an estimated shortfall of Rs. 30,000 crores in Cess. The GST Compensation Cess was a mechanism provided by the Centre to compensate for any revenue estates on account of implementation of GST. The cess served as a marker of trust between the Centre and the States. Erosion of this trust has made the states wary of all recent changes made by the Centre from the abolition of the Planning Commission to Terms of Reference of the 15th Finance Commission, fearing that all these steps collectively are weakening the structure of Fiscal Federalism in India. On the other hand, the Centre negates these apprehensions citing the increased devolution in the 14th Finance Commission and reasoning that GST Compensation Cess is an independent matter of contention and not a part of any larger plan.

Vision IAS Weekly Changing Dynamics of Fiscal Federation in India

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