Transfer of Resources — Mains Questions

Critically analyze the evolution of the Finance Commission's recommendations on resource transfers, highlighting the major shifts from the initial commissions to the 15th Finance Commission. What challenges persist in achieving true fiscal federalism in India?

Discuss the various mechanisms of inter-governmental fiscal transfers in India. How do these mechanisms address vertical and horizontal fiscal imbalances, and what are their implications for Centre-State financial relations?

The 15th Finance Commission introduced 'demographic performance' and 'tax effort' as new criteria for horizontal tax devolution. Analyze the rationale behind these additions and their potential impact on fiscal equalization and state behavior.