UPSC Themes

UPSC CSE Mains 2025 · GS3 · 15 marks · 250 words

Explain how the Fiscal Health Index (FHI) can be used as a tool for assessing the fiscal performance of states in India. In what way would it encourage the states to adopt prudent and sustainable fiscal policies?

Theme

T91 Fiscal federalism: Finance Commission, GST & state finances

What UPSC asks in this theme

UPSC asks about Finance Commissions (13th, 14th, 15th), GST (101st Amendment) and compensation, Centre–State financial relations, and Fiscal Health Index.

What to cover

Writing the answer

These notes are for the whole theme, built from all 8 of its PYQs. UPSC does not publish model answers.

This question also needs

T134 Budgeting & fiscal policy: capital vs revenue, FRBM, tax expenditure, budgets

More PYQs from this theme

  1. GS2202515 marks

    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?

  2. GS2202315 marks

    Explain the significance of the 101st Constitutional Amendment Act. To what extent does it reflect the accommodative spirit of federalism

  3. GS22021

    How have the recommendations of the 14th Finance Commission of India enabled the States to improve their fiscal position?

  4. GS32020

    Explain the rationale behind the Goods and Services Tax (Compensation to States) Act of 2017. How has COVID-19 impacted the GST compensation fund and created new federal tensions?

  5. GS22018

    How is the Finance Commission of India constituted? What do you know about the terms of reference of the recently constituted Finance Commission? Discuss.

  6. GS22017

    Explain the salient features of the constitution (One Hundred and First Amendment) Act, 2016. Do you think it is efficacious enough ‘to remove cascading effect of taxes and provide for common national market for goods and services’?

  7. GS32013

    Discuss the rationale for introducing Goods and Services Tax (GST) in India. Bring out critically the reasons for the delay in roll out for its regime.

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