UPSC Mains 2018 GS2 Q14 — Finance Commission
How is the Finance Commission of India constituted? What do you know about the terms of reference of the recently constituted Finance Commission? Discuss. (Answer in 250 words)
Question Decoded — examiner's intent
- Directive verbs
- HowWhat do you knowDiscuss
- Scope keywords
- Finance Commission of Indiaconstitutedterms of referencerecently constituted Finance Commission
- Implicit sub-parts
- Constitutional provisions under Article 280 and the Finance Commission Act, 1951.
- Specific mandate and unique ToR of the 16th Finance Commission (Chairman Arvind Panagariya).
- Critical evaluation of the ToR's impact on cooperative and fiscal federalism.
- Significance of the 2026 census or population data usage in the current context.
- Common pitfalls
- Wasting too many words on the historical 15th FC recommendations instead of focusing on the 'recently constituted' 16th FC.
- Failing to mention the 'Qualifications' of members as prescribed by the Finance Commission (Miscellaneous Provisions) Act, 1951.
- Neglecting the 'Terms of Reference' (ToR) and providing a generic list of FC functions instead.
- Missing the specific timeline and the period of coverage for the 16th FC (April 2026 to March 2031).
- Dimensions required
- ConstitutionalLegislativeFiscal FederalismCurrent AffairsEconomic Policy
- Marks allocation hint
Allocate 50-60 words to the constitutional mechanism and qualifications (Article 280). Dedicate 120-130 words to the specific Terms of Reference of the 16th FC, highlighting vertical/horizontal devolution and disaster management. Use the final 60-70 words for a discussion on the challenges and implications of these terms for State-Centre relations.
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