UPSC Themes

Theme T91 · Constitution & Polity

Fiscal federalism: Finance Commission, GST & state finances

8PYQs
5GS2
3GS3
2013–20257 distinct years
2asked 2024–26

Roadmap · step 43 of 171 · Stage 2: Building blocks

What UPSC asks

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

Prepare these

Answer writing

Directive words in these PYQs: Explain (4), Discuss (2), Examine (1), How far (1), Assess (1), To what extent (1).

Linked themes

Builds on: study these first

These come earlier in the roadmap. Questions in this theme use them.

Step 32: Budgeting & fiscal policy: capital vs revenue, FRBM, tax expenditure, budgets

Syllabus lines covered

All 8 PYQs, newest first

  1. GS2202515 marks · 250 wordsGS2-POL-05-M2025-Q14

    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. GS3202515 marks · 250 wordsGS3-ECO-04-M2025-Q11

    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?

  3. GS2202315 marks · 250 wordsGS2-POL-05-M2023-Q15

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

  4. GS22021GS2-POL-05-M2021-S01

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

  5. GS32020GS3-ECO-04-M2020-S01

    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?

  6. GS22018GS2-POL-05-M2018-S01

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

  7. GS22017GS2-POL-05-M2017-S01

    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’?

  8. GS32013GS3-ECO-04-M2013-S03

    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.