GS Mains Model Question & Answer: Discuss the main recommendations of 14th Finance Commission
Q. Discuss the main recommendations of 14th Finance Commission. (12.5 Marks)
(General Studies Mains Paper III- Economy: Indian Economy and issues relating to planning)
Model Answer :
Article 280 of the Constitution of India requires the Constitution of a Finance Commission every five years, or earlier. For the period from 1st April, 2015 to 31st March, 2020, the 14th Finance Commission (FFC) was constituted by the orders of President on 2nd January, 2013 and submitted its report on 15thDecember, 2014.
The Finance Commission is required to recommend the distribution of the net proceeds of taxes of the Union between the Union and the States (commonly referred to as vertical devolution); and the allocation between the States of the respective shares of such proceeds (commonly known as horizontal devolution).