States are at the forefront of development and generation of opportunities and growth. Yet, States are facing the weakened financial capacity in the recent past. Examine the reasons for the weakened financial powers of the State and suggest the measures to improve it. 10 marks

Mentor’s comment-
  • https://www.thehindu.com/opinion/lead/the-financial-capacity-of-states-is-being-weakened/article33024573.ece
  • In the intro, mention how the Constitution has provided for the financial independence of the State and the Centre.
  • In the body, mention the various reason for the weakening of the financial health of the State like reduced devolution to the State, roll out of the GST has taken away the autonomy of the States and use of cess and surcharge by the Central government etc. In the measures, suggest the sharing of more resources with the states, increasing the borrowing limits of the States, avoiding dependence on the cess and surcharges for raising revenue by the Central government.
  • Conclude by mention the need for stronger States with stronger financial capabilities.
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Somasis Mukherjee
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