How have the recommendations of the 14th Finance Commission of India enabled the states to improve their fiscal position? (150 words) [2021]
The recommendations of the 14th Finance Commission of India have enabled the states to improve their fiscal position in several ways:
Increased devolution of funds: The 14th Finance Commission recommended an increase in the devolution of funds from the Union government to the states, from 32% to 42%. This has provided the states with greater financial autonomy and flexibility to address their own development priorities.
Performance-based grants: The Commission also recommended the introduction of performance-based grants, which incentivize states to improve their financial management and service delivery. This has encouraged the states to focus on improving their fiscal performance and efficiency, which has helped to strengthen their financial position.
Reduction in central assistance: In line with the recommendation of the Commission, the Union government has also reduced its central assistance to the states, which has encouraged the states to rely more on their own resources. This has helped to improve the fiscal discipline of the states and make them more financially self-reliant.
Enhanced borrowing limits: The 14th Finance Commission also recommended an increase in the borrowing limits of the states, which has provided them with greater access to credit and helped them to finance their development projects.
Overall, the recommendations of the 14th Finance Commission have played a significant role in enabling the states to improve their fiscal position and address their development priorities more effectively.
![Rakesh was working as a Joint Commissioner in Transport department of a city. As a part of his job profile, among others, he was entrusted with the task of overseeing the control and functioning of City Transport Department. A case strike by drivers’ union of City Transport Department over the issue of compensation to a driver who died on duty while driving the bus came up before him for decision in the matter. He gathered that the driver (deceased) was plying Bus No. 528 which passed through busy and congested roads of the city. It so happened that near an intersection on the way, there was an accident involving the a middle-aged man. It was found that there was altercation between the driver and the car driver. Heated arguments between them led to fight and the driver gave him a a blow. Lot of passerbys had gathered and tried to intervene but without success. Eventually, both of them were badly injured and profusely bleeding and were taken to the nearby hospital. The driver succumbed to the injuries and could not be saved. The middle-aged driver’s condition was also critical but after a day, he recovered and was discharged. Police had immediately come to the spot and FIR was registered. Police investigation revealed that the quarrel in was started by the bus driver and he had resorted to physical violence. There exchange of blows between them. The City Transport Department management is considering of not giving any extra compensation to the driver’s (deceased) family. The family is very aggrieved. depressed and agitated against the discriminatory and non-sympathetic approach of the City Transport Department management. The bus driver (deceased) was 52 years of age, was survived by his wife and two school-college going daughters. He was the sole earner of the family. The City Transport Department workers’ union took up this case and when found no favourable response from the management, decided to go on strike. The union’s demand was two fold. First was full extra compensation as given to other drivers who died on duty and secondly employment to one family member. The strike has continued for 10 days and the deadlock remains. [2022]](https://www.iasexpress.net/wp-content/plugins/pt-content-views-pro/public/assets/images/lazy_image.png)
Nice and informative
Thanks! I’m glad it was helpful.