Pratidin
2021 · GS2 · 10 marksMains

How have the recommendations of the 14th Finance Commission of India enabled the States to improve their fiscal position?

Question source: superkalam.com

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Current 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.

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