How have the recommendations of the 14th Finance Commission of India enabled the States to improve their fiscal position?
Question source: superkalam.com
Write a timed answer in the appCurrent affairs to use in your answer
PAC flags ₹9,222 crore of cess collections not moved to their reserve funds in 2024-25 · 9 September 2026 · Covers one part · use it in the conclusion
Add a caveat: States argue that cesses kept outside the divisible pool have limited the real gain from Finance Commission devolution.
- Article 270 keeps cesses levied for specific purposes out of the divisible pool shared with the States.
- States have long argued that a rising share of cesses and surcharges reduces the effective devolution recommended by the Finance Commission.
- Suggest merging cesses that have outlived their purpose into the base tax, which would bring them into the divisible pool.
Also related
- States' share of the divisible pool
The 14th FC raised states' share to 42%; the 15th set it at 41%, the comparison this answer needs.