Current Affairs - Awards and Honours - Discussion

Arvind Panagariya, the Chairman of the 16th Finance Commission, highlighted concerns regarding the Centre's growing dependence on cesses and surcharges, which are not shared with states as part of the divisible pool of revenue. This issue stems from the 80th Constitutional Amendment, which formally excluded such revenues from sharing under Article 270. Cesses and surcharges, levied for specific purposes or on higher income brackets, are significant tools in India's fiscal policy but raise questions about revenue distribution and federal financial equity.