The 14th Finance Commission has recommended increase in States' share in net proceeds from tax collection from 32% to?
42%
The 14th Finance Commission, constituted in 2013, significantly altered the fiscal relations between the Union and State governments in India. A key recommendation was to increase the share of States in the net proceeds of taxes collected by the central government. This move aimed to bolster the financial autonomy and resources of individual States.
Prior to the 14th Finance Commission's recommendations, the States' share stood at 32%. The Commission, after extensive review and analysis of India's fiscal landscape, proposed a substantial hike to enhance the States’ capacity for development spending and service delivery. The crucial recommendation was to increase the States' share to 42%.
This increase represented a major shift in fiscal federalism in India, granting States greater control over their finances. The additional resources were expected to improve public service delivery in areas such as education, health, and infrastructure. The 14th Finance Commission's report detailed the rationale behind this decision, emphasizing the need for a stronger fiscal position for the States to meet their developmental goals.
Similar Questions
Fiscal policy in India is formulated by?
The Fiscal Responsibility and Budget Management (FRBM) Act, 2003 was enacted by the Parliament in ____.
The government of India has targeted revenue deficit for the financial year 2019-20 to be ____ % of GDP.
The Interim Budget 2019-20 has pegged the fiscal deficit for the year 2019-20 at ___% of GDP.
The _______ is/are constituted by the President under article 280 of the Constitution, mainly to give its recommendations on distribution of tax revenues between the Union and the States and amongst the States themselves.
Which one of the following is a function of Finance Commission of India?
Which of the following grants are provided from the center's resources over the 2021-26 period?
i) Grants to local bodies
ii) Disaster risk management funds
iii) Sector specific grants
iv) Revenue deficit grants
Jammu and Kashmir FRBM Act, 2006 has been passed as per the recommendation of ______
Which of the given options is INCORRECT in the context of fiscal deficit?
When the number of poor is estimated as the proportion of people below the poverty line, it is known as ______.
Important Questions from Fiscal Policy
Consider the following statements:
1. Tax revenue as a percent of GDP of India has steadily increased in the last decade.
2. Fiscal deficit as a percent of GDP of India has steadily increased in the last decade.
Which of the statements given above is/are correct?
Which of the following organizations brings out the publication known as ‘World Economic Outlook’?
Which one of the following statements appropriately describes the "fiscal stimulus"?
The authorization for the withdrawal of funds from the Consolidated Fund of India must come from
All revenues received by the Union Government by way of taxes and other receipts for the conduct of Government business are credited to the
