Special Category Status (SCS)
SCS provides financial and policy advantages to disadvantaged states, primarily through higher grant components in central assistance. While the 14th Finance...
The article reports on the 11th Governing Council meeting of NITI Aayog where Himachal Pradesh and Punjab Chief Ministers raised demands to Prime Minister Narendra Modi. Himachal Pradesh sought a high-level committee to assess the financial impact of issues like the discontinuation of Revenue Deficit Grant (RDG), losses from natural disasters, inadequate hydropower compensation, and GST framework shortfalls. Punjab demanded Special Category Status (SCS) with 90:10 funding for Centrally-sponsored schemes, citing its role as a border state facing cross-border terrorism and drug issues. Both states highlighted their contributions and financial challenges, seeking increased central assistance.
Durable syllabus ideas for revision — not article memory.
SCS provides financial and policy advantages to disadvantaged states, primarily through higher grant components in central assistance. While the 14th Finance...
Previous year Prelims questions on overlapping themes and topics.
Consider the following:
1. Demographic performance
2. Forest and ecology
3. Governance reforms
4. Stable government
5. Tax and fiscal efforts
For the horizontal tax devolution, the Fifteenth Finance Commission used how many of the above as criteria other than population area and income distance?
Based on principles of need, equity and performance, overall devolution formula is as given in the chart:
Which of the following statements with regard to recommendations of the 15th Finance Commission of India are correct?
I. It has recommended grants of ₹4,800 crores from the year 2022–23 to the year 2025–26 for incentivizing States to enhance educational outcomes.
II. 45% of the net proceeds of Union taxes are to be shared with States.
III. ₹45,000 crores are to be kept as performance-based incentive for all States for carrying out agricultural reforms.
IV. It reintroduced tax effort criteria to reward fiscal performance.
Select the correct answer using the code given below.
The 15th Finance Commission made recommendations to promote better fiscal discipline, education, and agriculture reforms, while adjusting tax devolution among states. ✅ Statement I: Correct 4,800 crores were recommended (2022–23 to 2025–26) to incentivize states for improving educational outcomes. ❌ Statement II: Incorrect The Commission recommended 41% of Union taxes to be shared with states, not 45%. ✅ Statement III: Correct It proposed a ₹45,000 crore performance-based incentive for states to implement agricultural reforms. ✅ Statement IV: Correct It reintroduced the 'tax effort' criterion, rewarding states that better mobilize revenue in relation to their GSDP.
With Reference to the Fourteenth Finance Commission, which of the following statements is/are correct?
1. It has increased the share of States in the central divisible pool from 32 per cent to 42 per cent
2. It has made recommendations concerning sector-specific grants
Statement 1 is Correct: The Fourteenth Finance Commission indeed increased the devolution of tax revenue from the central government to the states. Statement 2 is Incorrect: While promoting formula-based devolution, the commission does not provide recommendations regarding sector-specific grants to ensure focus on critical areas.
Consider the following subjects under the Constitution of India:
I. List I–Union List, in the Seventh Schedule
II. Extent of the executive power of a State
III. Conditions of the Governor’s office
For a constitutional amendment with respect to which of the above, ratification by the Legislatures of not less than one-half of the States is required before presenting the bill to the President of India for assent?
Statement I is Correct: Any change in the Union List alters the distribution of legislative powers and requires ratification by at least half of the State Legislatures. Statement II is Correct: Changes affecting the extent of a State’s executive power also need ratification by not less than one-half of the States. Statement III is Incorrect: Conditions of the Governor’s office can be amended by Parliament alone and do not require ratification by States.
Consider the following statements
1. The Fiscal Responsibility and Budget Management (FRBM) Review Committee Report has recommended a debt to GDP ratio of 60% for the general (combined) government by 2023, comprising 40% for the Central Government and 20% for the State Governments.
2. The Central Government has domestic liabilities of 21% of GDP as compared to 49% of GDP of the State Governments.
3. As per the Constitution of India, it is mandatory for a State to take the Central Government’s consent for raising any loan if the former owes any outstanding liabilities to the latter.
Which of the statements given above is/are correct?
Statement 1 is correct. The Fiscal Responsibility and Budget Management (FRBM) Review Committee Report indeed recommended a debt-to-GDP ratio of 60% for the general (combined) government by 2023, with 40% for the Central Government and 20% for the State Governments. This recommendation aimed to ensure fiscal discipline and sustainability. Statement 2 is not correct. The Central Government has domestic liabilities of 46.1% of GDP (2016-17) and as a percentage of GDP, States liabilities increased to 23.2 per cent at end-March 2016. Statement 3 is correct. The Constitution of India empowers State Governments to borrow only from domestic sources (Article 293(1)). Further, as long as a State has outstanding borrowings from the Central Government, it is required to obtain the Central Government's prior approval before incurring debt (Article 293 (3)).
Which one of the following in Indian polity is an essential feature that indicates that it is federal in character?
Option A is correct. In a federal system, power is distributed between the central government and the states. There can be disputes about the division of power or interpretation of the Constitution.
An independent judiciary acts as an impartial umpire to settle these disputes and uphold the Constitution. It ensures that both the central government and the states function within their constitutional boundaries.The other options, while relevant to Indian polity, are not exclusive to federal systems Option B is incorrect. The Union Legislature having elected representatives from constituent units is a common feature in both federal and some unitary states with devolved power. Option C is incorrect. The Union Cabinet having elected representatives from regional parties is not a defining characteristic of federalism. Political party affiliation doesn't necessarily determine the federal structure. Option D is incorrect. The Fundamental Rights being enforceable by Courts of Law, while essential for a democracy, this feature exists even in some non-federal states.
Consider the following statements:
With reference to the Constitution of India, if an area in a State is declared as Scheduled Area under the Fifth Schedule,
I. the State Government loses its executive power in such areas and a local body assumes total administration.
II. the Union Government can take over the total administration of such areas under certain circumstances on the recommendations of the Governor.
Which of the statements given above is/are correct?
When an area is declared a Scheduled Area under the Fifth Schedule of the Constitution, it continues to be administered by the State Government, but with special powers granted to the Governor for tribal welfare. ❌ Statement I: Incorrect The State Government does not lose its executive powers. There is no provision for a local body to take over full administration. ❌ Statement II: Incorrect The Union Government cannot take over total administration of Scheduled Areas under the Fifth Schedule, even on the Governor’s recommendation.
Who among the following constitute the National Development Council?
1. The Prime Minister
2. The Chairman, Finance Commission
3. Ministers of the Union Cabinet
4. Chief Ministers of the States
Select the correct answer using the codes given below:
The National Development Council (NDC) in India is comprised of the following members: * The Prime Minister (who chairs the council)
* Ministers of the Union Cabinet
* Chief Ministers of the States The Chairman, Finance Commission - while the Finance Commission plays a crucial role in recommending the devolution of financial resources from the central government to the states, the Chairman is not a member of the NDC. _Note: While the NDC was proposed to be abolished, it has not been formally dissolved, although its powers have largely been transferred to the NITI Aayog's Governing Council._
Which one of the following is not a feature of Indian federalism?
Indian federalism is characterized by key features such as an independent judiciary, a clear division of powers between the Centre and the States, and unequal representation of States in the Rajya Sabha, all of which are enshrined in the Indian Constitution. However, unlike classical federations like the United States, Indian federalism is not the outcome of an agreement among the federating units. The Indian Constitution, which lays down the framework for India's federal structure, was not created through an agreement among the federating units but was adopted by the Constituent Assembly of India.
Which of the following statements with respect to the Revamped Rashtriya Gram Swaraj Abhiyan (RGSA) is/are correct ?
1. The period of its implementation is 1st April, 2021 to 31st March, 2026.
2. The key objective of the Revamped RGSA is to develop the governance capabilities of the Panchayati Raj Institutions to deliver on the Sustainable Development Goals.
3. The share of the Central funding for the Revamped RGSA is 100% for all States and Union Territories.
Select the answer using the code given below :
Statement 1 is Incorrect: The Revamped Rashtriya Gram Swaraj Abhiyan (RGSA) was approved by the Cabinet Committee on Economic Affairs for implementation from 1st April 2022 to 31st March 2026 (co-terminus with the 15th Finance Commission period), not from 1st April 2021. Statement 2 is Correct: The primary objective of the revamped scheme is to develop and enhance the governance capabilities of Panchayati Raj Institutions (PRIs) so they can effectively deliver on the Sustainable Development Goals (SDGs). It focuses on the localization of SDGs at the grassroots level through inclusive local governance. Statement 3 is Incorrect: The Revamped RGSA is a Centrally Sponsored Scheme, meaning the funding is shared between the Centre and the States. It is not 100% centrally funded for all States and UTs. The sharing pattern is 60:40 (Centre:State) for general category States, and 90:10 for North-Eastern States, Hilly States, and the Union Territory of Jammu & Kashmir. 100% Central funding applies only to other Union Territories and specific Central components of the scheme. Therefore, option B is the correct answer.
Previous year Mains questions mapped to overlapping GS syllabus topics.
The National Commission for Protection of Child Rights has to address the challenges faced by children in the digital era. Examine the existing policies and suggest measures the Commission can initiate to tackle the issue.
"In contemporary development models, decision-making and problem-solving responsibilities are not located close to the source of information and execution defeating the objectives of development." Critically evaluate.
What are environmental pressure groups? Discuss their role in raising awareness, influencing policies and advocating for environmental protection in India.
Examine the evolving pattern of Centre-State financial relations in the context of planned development in India. How far have the recent reforms impacted the fiscal federalism in India?
Discuss the evolution of collegium system in India. Critically examine the advantages and disadvantages of the system of appointment of the Judges of the Supreme Court of India and that of the USA.
Indian Constitution has conferred the amending power on the ordinary legislative institutions with a few procedural hurdles. In view of this statement, examine the procedural and substantive limitations on the amending power of the Parliament to change the Constitution.