Key Concepts:
– Kerala plans to raise concerns over fiscal curbs imposed by the central government.
– Pre-budget consultation serves as a platform for states to voice financial demands and policy suggestions.
– Fiscal curbs limit states’ borrowing and expenditure capabilities, impacting developmental and welfare schemes.
Relevance for UPSC Aspirants:
– Understanding center-state financial relations is crucial for the Indian Polity and Economy syllabus.
– Examines fiscal federalism challenges in India, highlighting state autonomy versus central control.
– Relevant for questions on public finance, budgetary processes, and intergovernmental fiscal dynamics.
Implications:
– Strained fiscal space may hinder Kerala’s socio-economic initiatives.
– Reflects broader conflict in India’s federal structure concerning resource allocation.
– Insight into real-world application of fiscal federalism theories discussed in UPSC syllabus.
Reference: https://www.thehindu.com/news/national/kerala/kerala-will-raise-issue-of-fiscal-curbs-at-pre-budget-consultation-kn-balagopal/article70491230.ece?
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