Which of the following is not a problem of federal finance in India ?

Correct option is D

The correct answer is (d) Increased importance of Finance Commission.

The Finance Commission is a constitutional body established under Article 280 of the Indian Constitution. Its primary role is to recommend the distribution of tax revenues between the central government and the state governments, as well as among the states themselves. The increased importance of the Finance Commission is not considered a problem of federal finance; rather, it serves as a mechanism to address fiscal imbalances and promote cooperative federalism.

Additional Information:

Gap between needs & resources of state governments: This refers to the disparity between the financial requirements of state governments and the resources available to them, leading to fiscal stress and dependence on central transfers.

The question of state autonomy: This involves concerns over the extent of financial independence states possess, affecting their ability to implement policies tailored to their specific needs.

Failure to tackle regional imbalance: This pertains to the inability to address economic disparities across different regions, resulting in uneven development and social tensions.