SHIKHAR MAINS 2022 - DAY 8 Model Answer English
Q1: केंद्र और राज्य के बीच वित्तीय संबंधों को मजबूत करने में वित्त आयोग कैसे सक्रिय भूमिका निभाता है? चर्चा कीजिये ।
How Finance commission plays a proactive role in strengthening Fiscal relationship between centre and state? Discuss.
Approach -
• Start the answer by giving a general introduction to the Finance Commission.
• After this, expand the answer by explaining the functions of the Finance Commission.
• Again, discuss fiscal federalism or Centre-State relations in the country by the Finance Commission.
• Finally conclude the answer by stating the commission's given power.
Ans:
Finance Commission:
It is a commission to be created by the President of India for five years under the provisions of Article 280 of the Constitution of India. It decides on the share of state governments in the total tax collection of the central government. The term of the 15th Finance Commission is currently underway. Its chairman is N.K. Singh. The period of the 15th Finance Commission is 2020-21 to 2025-26.
The main functions of the Finance Commission are:
(i) Distribution of net income from taxes shared between the Centre and states and allocation of such income to states.
(ii) Formulation of principles governing payment of grants by the Centre to states.
(iii) Any other matter relating to financial relations between the Centre and the States.
Therefore, its main function is to give the central government its recommendations on how to share the taxes levied by it with the states. These recommendations cover a period of five years. The Commission also makes rules on how the Centre should grant states out of the Consolidated Fund of India. At the same time, the Commission has to suggest measures to augment the resources of the States and to supplement the resources of Panchayats and Municipalities.
The present Finance Commission has recommended giving 41% share to the states from the central government's tax collection. It has made the required adjustment of about 1% due to the changed status of the erstwhile state of Jammu and Kashmir to and new Union Territories of Ladakh and Jammu and Kashmir.
Fiscal federalism or Centre-State relations in the country by the Finance Commission:
Under the federal structure envisaged in the Constitution, most of the taxation powers are with the Centre but bulk expenses are borne by the states. Such a federal structure requires transfer of resources from the Centre, which levies and collects taxes in the form of indirect taxes such as income tax and excise and customs duties, to the states. Therefore, proper allocation of resources between different states is necessary on the basis of the population of the state, fiscal position of the state, forest area of the state, income gap (income disparity) and area. By such a proper allocation, the Finance Commission can prevent a confrontation between the states and the Centre.
Power of recommendation of the Commission:
The Constitution does not make the recommendations of the Finance Commission binding on the government. However, it is a sound precedent that the government usually accepts the recommendations of the Commission as far as sharing of revenue is concerned. These recommendations relating to distribution of central taxes and duties and grants are generally implemented by presidential order.
So, we can say that the finance commission play a vital role in sustaining and strengthening cooperative financial competition by providing recommendations and principals to central government regarding the states.
Q2: भारतीय और अमेरिकी संघवाद में क्या समानताएं और अंतर हैं?
What are the similarities and differences between Indian and American federalism?
Approach -
• Start the answer by giving a general introduction to federalism.
• After this, expand the answer by giving brief history of both constitutions.
• Discuss similarities and differences between American and Indian federalism.
• Finally conclude the answer appropriately.
Answer:
In the federal government, there is a division of powers between the Centre and the states. Both the governments conduct functions in their respective jurisdictions in accordance with the rights and instructions given by the Constitution. Federal system is visible in countries like United States of America, Switzerland, Australia, Canada etc. Here included the division of powers, the rigid and written constitution, the supremacy of the constitution, the independence of the judiciary, etc.
America attained the status of Federal Republic Nation in the year 1789; Whereas India implemented its constitution in the year 1950 and established concepts like socialist, sovereign, secular and democratic republic.
Similarities Between Indian Federalism and American Federalism:
1. The Constitutions of both the United States and India are written constitutions, which provide a federal political framework, where both governments exercise their respective rights.
2. The Constitutions of both countries provide for amendments to the Constitution, so that it can meet the changing circumstances of their country and the growing political, economic, social needs and demands.
3. Many fundamental rights were provided to its citizens by the American Constitution, such as the right to equality, freedom, the right against exploitation, freedom of religion, cultural and educational rights, the right to property, and the right to constitutional remedies, etc. Fundamental rights have been provided to the people under Part 3 of the Indian Constitution.
4. Both the Central and The State Government are empowered to make laws on the subjects given in the Concurrent List and, whenever there is a dispute between the laws made by the Central Government and the laws made by the State Government, the laws made by the Central Government are considered to be the best.
5. Both the US and Indian Constitutions provide for the division of powers between three institutions, namely executive, legislature and judiciary.
6. The upper and lower houses of the US legislature are called the Senate and the House of Representatives, and on the other hand, India consists of the Lok Sabha and the Rajya Sabha, the lower and upper houses of parliament.
Difference Between Indian Federalism and American Federalism:
1. The Constitution of America is more stringent than the Indian Constitution. Therefore, it is not easy to amend it, while the Indian Constitution is relatively flexible. The U.S. Constitution has been amended only 27 times. Whereas, the Indian Constitution, which came into force in the year 1950, has been amended 127 times so far.
2. 2. In the US, the president is the head of state and hence his government is popularly known as the Presidential Form of Government. India, on the other hand, has a parliamentary form of government, as the prime minister exercises real power with his cabinet, with the president being only a nominal head.
3. The President of the United States holds office for a period of four years, while the Prime Minister of India can remain in power for five years, as long as his political party wins by a majority in the Lok Sabha.
4. The Constitution of India recognizes single citizenship, while on the other hand, the US Constitution provides dual citizenship, according to which, a US citizen can have citizenship of one center and other states.
5. In the US, a judge holds office as long as he is able to perform his duties and on the other hand, the Indian Constitution states that a district judge can hold office till the age of 58 and a high court judge can hold office till the age of 62 and a judge of the Supreme Court till the age of 65 years.
Therefore, it can be concluded that federalism has some characteristics that are similar for both India and the United States of America, but on the other hand, India and America differ in many aspects related to the federal conduct of their constitution. However, both the US and Indian federalism were successful overall despite being obstacles.
