How is the Finance Commission of India constituted? What do you know about the terms of reference of the recently constituted Finance Commission? Discuss.
UPSC asks about Finance Commissions (13th, 14th, 15th), GST (101st Amendment) and compensation, Centre–State financial relations, and Fiscal Health Index.
What to cover
FC constitution and terms of reference
14th FC devolution increase
GST structure, Council, compensation and COVID stress
Fiscal Health Index
Writing the answer
Cross-link with GS3 budgeting
These notes are for the whole theme, built from all 8 of its PYQs. UPSC does not publish model answers.