2. It is argued that India’s fiscal centre of gravity has rapidly shifted from the Centre to the States. Analyse the statement in context of the debate on fiscal discipline. Also, enumerate the key recommendations of the N.K. Singh panel on Fiscal Responsibilty and Budget Management Act.

Approach:

♤ Explain how India’s fiscal centre of gravity has rapidly shifted from the Centre to the States.

♤ Mention the status of fiscal discipline of the states and the reasons behind it.

♤ Enumerate recommendations of the N. K. Singh panel.