Art & Culture
- Sexual Harassment Charges against Chief Justice of India Ranjan Gogoi
- All You Need to know about Electoral Bonds
- Electoral Bonds controversy
- NaMo TV controversy
- General Elections 2019
- RBI Governor bats for a Permanent Status to Finance Commission
- PM Modi’s Mission Shakti Speech & Model Code of Conduct
- Sadhvi Pragya Thakur’s latest Controversy
- Rafale deal document controversy
- Should SC Judges be under RTI ambit?
- Supreme Court Judgement on Tainted Candidates
- VVPAT verification
Governance & Social Justice
- Candida Auris : Drug- resistant fungi
- Candida auris infection
- Healthcare System for India, Difference in USA & European healthcare model?
- Lateral Entry in Civil Services explained
- Model policy for Women in Police
- NIRF India Rankings 2019 declared
- Quality Assurance Scheme
- Sex on false promise of marriage is rape
- Survey 2019 Ambitions Beyond Growth report by UNESCAP
- World Health Statistics Overview 2019 report on Life Expectancy
- World Press Freedom Index 2019
- Supreme Court compensation order on Bilkis Bano case
- WHO guidelines on physical activity for children under 5 years of age
- Global Talent Competitive Index 2019
- Algeria Political Crisis
- EU’s new Copyright Law, Will it change Web Worldwide?
- India Pakistan Kartarpur Corridor Talks
- India to Become NATO Ally?
- Japan Starts a New Era
- Julian Assange Arrested
- Sudan Political Crisis
- Trump designates Islamic Revolutionary Guard Corps of Iran
- United Nations Has to Pay India $38 Million
- US labels Revolutionary Guard of Iran a terror organisation
- US Mexico border wall controversy
- Why is UAE Important for India?
- Why is Chile Important for India?
- India Pakistan Conflict De-escalation Mechanisms
- India suspends cross LoC trade with Pakistan
- What is Arab Spring 2.0?
- India to stop buying Oil from Iran
- Trump withdraws from UN arms treaty
- Asian Development Outlook 2019
- China’s growth after slowdown
- Foreign Investment in India
- India’s 20th Livestock Census
- India’s transition to Renewable Energy from conventional sources
- Indian Army Builds The Longest Bridge of India Over Indus In Leh
- India Energy Modelling Forum by NITI Aayog & USAID
- National Common Mobility Card launched
- Rise and fall of Private Airlines in India
- Rise in Global Crude Oil prices & weakening Rupee
- Slowdown in Industrial Growth & rising Inflation
- Supreme Court order on EPFO
- Supreme Court quashes RBI’s 12 February Circular on NPA
- What are Junk Bonds?
- What is Fixed Maturity Plans?
- What is GDP deflator? Is it more comprehensive compared to WPI and CPI?
- What is Trader’s Credit Card Scheme?
- What is Wholesale Price Index?
- 1st Bimonthly Monetary Policy review – April 2019
- National Rubber Policy 2019
- Sensex hits 7 months high, History & Functions of Bombay Stock Exchange
- Supreme Court orders RBI on RTI
- What is Dedollarisation?
- Asian Tea Alliance
- Pepsico vs Farmers Issue
Defence & Security
Science & Technology
- Dhanush Artillery Guns
- Combat Casualty Drugs
- The Indian Museum of the Earth (TIME)
- EMISAT Satellite Launched
- Faster Adoption & Manufacturing of Hybrid & Electric
- First Ever Image of a Black Hole
- India to Buy MH60 Romeo Helicopters
- Nepal and Sri Lanka Launch Their First Satellites Raavana 1 & NepaliSat-1
- Nirbhay Missile Successfully Tested
- High Bacteriophages in Ganga River
- Army invokes Emergency Powers for Missile Deal
- Cell Based Meat
- INS Imphal Guided Missile Destroyer
- Draft Indian Forest Act 2019
- Gujarat Fishermen’s victory in US Supreme Court
- Humpback Mahseer Fish included in Critically Endangered list by IUCN
- India Cooling Action Plan (ICAP)
- Jammu & Kashmir Environment Issues
- Madras High Court order on Chennai Salem Highway
- Monkey declared Vermin in Himachal Pradesh
- Neelakurinji Flower under Severe Threat
- Solar eWaste
- Special Postal Stamp on Ice Stupas released
- State of Global Climate report 2018
- What is Green Finance Ecosystem?
- Wind turbines are impacting ecology in Western Ghats
- All about Wild Food Plants
Spice of the Month
- GS 2 || Polity || Constitutional Bodies || Finance Commission
Why in news?
- Reserve Bank of India (RBI) Governor Shaktikanta Das has called for a “permanent status to finance commissions” where the old commission continues to implement schemes till the next commission starts functioning.
- Mr Das was earlier a member of the Fifteenth Finance Commission, and has served as a senior official in the Union finance ministry.
- In the past different Finance Commissions had “adopted different approaches on tax devolution” and made grants to states, and that was a problem because more continuity was desired.
- Presumably in aid of that effort, RBI Governor made a case for a permanent Finance Commission as opposed to the current system, in which it is reconstituted every five years.
- This was necessary now that the goods and services tax (GST) had come into operation, and the GST Council could focus on the need for improving tax collections while the Finance Commission could manage other reforms.
- The suggestion for a permanent status to Finance Commissions does not take into account the continuing need for renewal in their recommendations.
- Finance Commissions survey the fiscal landscape as well as the state of federalism and then make recommendations, which the political class has to take on board.
- Despite different approaches there is a broad trend in recent Commissions to increase devolution towards states. This has been established, and future Commissions will no doubt take it forward.
- The real problem is that such recommendations have not been followed up on in the right spirit by successive Union governments.
- The current government, for example, did not properly act on the Fourteenth Finance Commission’s decision to raise the proportion of the shared pool of taxes given to the states from 32 to 42%.
- Much of that increased allotment was clawed back through various types of cess, as well as a sharp reduction in the Union’s outlay on centrally-sponsored schemes.
Significance of Finance Commission
- The Finance Commissions are a crucial part of India’s constitutional set-up. They allow for constant renewal in how the Union of India approaches federal questions.
- Creating a permanent Finance Commission with a particular set of rules will hamper this effort and severely undermine the federal structure of India. The states are watching this discussion closely.
- Already the Union has exerted undue influence on the Fifteenth Finance Commission through a controversial set of additions to the Terms of Reference that some states, particularly in the south, fear will penalise them.
- The Finance Commissions should be respected, and not viewed as an inconvenience.
- Particularly, in the post GST scenario, there has to be continuity and change between Finance Commissions. Discuss.