Mentor’s Comments-
- https://epaper.thehindu.com/
Home/ShareArticle?OrgId= GNRA75O96.1&imageview=0 - In the introduction, talk about the dismal fiscal health of the states.
- In the body, mention issues between centre-state in fiscal domain with a focus on the freebie debate. Next, talk about the issues with discretionary spending by the states.
- Conclude by highlighting the need of robust financial health for overall economic growth.
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Akanksha
You are writing the same amount for a 10-marker and a 15-marker. Ideally, the former should be 1.5-2 pages and the later 2.5-3 pages.
In this question, you have to understand the context- there has been a report by RBI which indicates rising debt of states, so you need to talk about that first..mention of constitutional provision is fine but you can avoid explaining the provisions. Rather, you can give some reasons for increasing debt- UDAY scheme, loan waivers, other populist schemes promising freebies etc
Issues mentioned between centre-states are fine, issues over GST, implementation of central sector schemes can be added.
In next part, you need to get into a bit of detail about discretionary spending- mention the argument of centre and why it wants it to be reduced- fiscal stress, additional resource mobilization, increased borrowings etc; then mention why are states supporting it- think of it as welfare provisioning.
Next, a brief way forward can be mentioned- funds should be utilized for capital formation, fiscal consolidation, cooperative federalism etc
Finally, conclude.
Core economy questions from GS3 will expect some technical detailing from you, just explaining superficially especially in 15 markers won’t be sufficient.
Keep practicing. Check model answer. 🙂