Transfer of Resources — Prelims Strategy

Prelims Strategy

For Prelims, a precise and factual approach is essential. Begin by thoroughly memorizing the key constitutional articles related to resource transfers (Articles 268, 269, 270, 271, 275, 280, 282, 292, 293) and understanding their specific provisions.

Focus on the Finance Commission: its constitutional status (Article 280), composition, and core functions. Pay close attention to the latest Finance Commission (currently the 15th FC) – specifically, its recommended vertical devolution percentage, the detailed criteria used for horizontal devolution (with their respective weights), and any significant new grants or performance incentives.

Understand the fundamental differences between tax devolution, statutory grants, discretionary grants, and Centrally Sponsored Schemes. Create flashcards for key terms like 'divisible pool,' 'income distance,' 'fiscal capacity,' and 'revenue deficit grant.

' Practice MCQs that test your knowledge of these facts and distinctions. Be vigilant about current affairs updates related to Finance Commission implementation, GST compensation, and any new policy announcements impacting Centre-State financial relations, as these are prime targets for Prelims questions.