Centre-State Financial Relations
Centre-State Financial Relations is a Polity concept from the MPSC syllabus, tested in 4 past MPSC questions (2016, 2021). Below are those real questions with their correct answers and explanations, plus the concepts worth being comfortable with first.
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खालीलपैकी कोणत्या देशानी संघीय वित्त व्यवस्था स्वीकारली आहे ? / Which of the following countries have adopted a federal system of government finance ?
Federal systems of government finance involve specific constitutional division of taxation powers and revenue sharing between federal and sub-national units, seen in classical federal models.
केंद्र-राज्य संघर्षात व राज्यांना वित्तीय स्वायत्तता प्रदान करण्याच्या संदर्भात काय खरे नाही? अ. स्वातंत्र्यापासून केन्द्र आपले कार्य क्रमाने अशा रीतीने वाढवत आहे की राज्ये केन्द्रावर पूर्णपणे विसंबून राहातात. ब. केन्द्राचे वित्तीय स्रोत लवचिक नाहीत. What is not true in connection with the Centre-State conflict and granting of fiscal autonomy to the states? a. Since independence, the Centre has been gradually extending its functions in such a way that the states remain completely dependent upon it. b. The financial resources of the Centre are inelastic.
(a)स्वातंत्र्यापासून केन्द्र आपले कार्य क्रमाने अशा रीतीने वाढवत आहे की राज्ये केन्द्रावर पूर्णपणे विसंबून राहातात. / Since independence, the Centre has been gradually extending its functions in such a way that the states remain completely dependent upon it.
(b)केन्द्राचे वित्तीय स्रोत लवचिक नाहीत. / The financial resources of the Centre are inelastic.
Statement a is true because the Centre has steadily expanded its role, making states financially dependent. Statement b is false because the financial resources of the Centre are actually elastic (expansive sources like income tax, GST, corporate tax), whereas states' resources are often described as inelastic. Therefore, only statement b is not true.
योग्य विधान/विधाने ओळखा. / Identify the correct statement/statements.
(a)संघीय व्यवस्था केंद्र आणि राज्य सरकारमधील वित्तीय संबंध निश्चित करत नाही. / Federal system of government does not define the financial relations between the central and state governments.
(b)संघीय व्यवस्था राज्य सरकारामधील वित्तीय संबंध निश्चित करते. / Federal system of government defines the financial relations among the state governments.
(c)संघीय व्यवस्था केंद्र आणि राज्य सरकारा मधील वित्तीय संबंध निश्चित करते. / Federal system of government defines the financial relations between the central and the state governments.
(d)संघीय सरकार व्यवस्था स्थानिक सरकारा मधील वित्तीय संबंध निश्चित करते. / Federal system of government defines the financial relations between the local governments.
A federal system constitutionally defines and delineates the financial and legislative relations between the central government and the constituent state governments.
प्रस्तुत उताऱ्यातून याची शिफारस करण्यात आली आहे : / The present passage recommends this :
(a)संघीय व्यवस्थेत स्वतंत्र वित्तीय प्राधिकरण असावे. / Independent financial authority in a federal system
(b)प्रत्येक सरकारला स्वतंत्र महसूल साधने असावीत. / Separate/Independent sources of revenue for each government
(c)कर आकारण्याचे स्वातंत्र्य असावे. / Powers to levy taxes
(d)संघीय कर महसूलाचे केंद्र व राज्य सरकारांत समान वाटप व्हावे. / Equal disribution of federal revenue between central and state government
A sound federal system requires independent financial authorities, separate revenue sources for each level of government, and adequate powers to levy taxes to ensure fiscal autonomy.