Finance Commission
A constitutional body (Article 280) constituted every five years to recommend the distribution of tax revenue between the Union and the states.
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On UPSC.wiki
Current affairsKishau Multipurpose Dam Project: Six-State MoU Signed — Water Security on the Tons RiverA long-pending Memorandum of Understanding (MoU) for the Kishau Multipurpose Dam Project was signed on September 15, 2026, between the Central Government and six states — Uttarakhand, Himachal Pradesh, Haryana, Rajasthan, Uttar Pradesh, and Delhi. The 236-metre concrete gravity dam on the Tons River (a Yamuna tributary) will generate hydropower, irrigate approximately 97,000 hectares, and supply 517 MCM of drinking water annually. Current affairsUPI MDR Policy Clarification 2026: P2P Transactions Remain Free; 0.4% MDR on Select Merchant Payments Above ₹2,000The Ministry of Finance and the Reserve Bank of India (RBI) clarified on September 15, 2026, that all person-to-person (P2P) UPI transactions will remain completely free. A Merchant Discount Rate (MDR) of 0.4% — capped at ₹300 — will now apply on select person-to-merchant (P2M) UPI payments above ₹2,000. The National Payments Corporation of India (NPCI) is implementing the change to make the zero-MDR model financially sustainable for payment ecosystem participants. Current affairsIndia's Real GDP Grows 7.8% in Q1 FY2026-27: MoSPI Data, Sectoral Drivers, and Exam SignificanceIndia's real Gross Domestic Product (GDP) grew at 7.8% in the first quarter of FY2026-27 (April–June 2026), up from 6.9% in Q1 FY2025-26, as per MoSPI's Quarterly Estimates released on August 31, 2026. Real GDP at constant 2011-12 prices reached ₹81.36 lakh crore, reaffirming India's position as the world's fastest-growing major economy. The services sector and manufacturing are the primary drivers. Current affairsUNEP "Limiting Overshoot" Report 2026: World Set to Breach 1.5°C — Paris Agreement Pathways and India's Climate ObligationsUNEP's "Limiting Overshoot" report (September 2026) declares that breaching the 1.5°C Paris Agreement warming threshold is now unavoidable in the near term. Without enhanced action, global temperatures could reach 2.6°C by 2100, but an "overshoot-peak-decline" pathway can return temperatures below 1.5°C through aggressive emissions cuts and large-scale carbon dioxide removal. Current affairsJapan's JCR Upgrades India's Sovereign Rating to 'A-': First Upgrade in Decades and What It MeansJapan's JCR upgraded India's sovereign credit rating to 'A-' (Stable) on September 2, 2026 — the first time India has achieved an 'A' category rating from JCR. The upgrade cites India's GDP growth above 6%, fiscal deficit declining to 4.4% of GDP, and Gross NPA ratio reaching a decade-low of 1.8% by March 2026. Current affairsMoSPI Revises GDP Base Year to 2022-23: PPI Replaces WPI, Double Deflation Adopted — What Changes and Why It MattersThe Ministry of Statistics and Programme Implementation (MoSPI) has released the National Accounts Statistics (NAS) 2026 with a revised base year of 2022-23, replacing the earlier 2011-12 series. The Wholesale Price Index (WPI) has been replaced by the Producer Price Index (PPI) for GDP deflation, and India has adopted the Double Deflation Method — aligning with IMF standards and providing a more accurate picture of sectoral value addition in the economy. Current affairsNepal Monsoon Floods 2026: Death Toll Crosses 1,000 — India's Humanitarian Response, Disaster Diplomacy, and India-Nepal RelationsNepal's 2026 monsoon floods have claimed over 1,000 lives — one of the country's worst flood disasters — with Nepal's hydropower generation dropping approximately 10%, requiring emergency power imports from India. India deployed rescue teams, dispatched humanitarian aid, and coordinated with China and Nepal for relief operations, demonstrating India's Neighbourhood First policy in action. Current affairsDistricts as Export Hubs (DEH): India's 770-District Strategy and the USD 1 Trillion Export Target by 2030249 Indian districts have formally adopted District Export Action Plans (DEAPs) under the Districts as Export Hubs (DEH) initiative — a DPIIT-led programme covering 770+ districts — as India pursues its USD 1 trillion merchandise and services export target by 2030. Evolved from the One District One Product (ODOP) model, DEH integrates EXIM Bank's GRID programme and PM GatiShakti to build grassroots export capacity. Current affairsIndia Hosts International Tiger Landscapes Workshop; IBCA Signs MoU with ADB for Nature-Positive Conservation FinancingThe International Big Cat Alliance (IBCA) signed a landmark MoU with the Asian Development Bank (ADB) on the sidelines of the International Tiger Landscapes Workshop (September 2–3, 2026) in New Delhi — unlocking nature-positive blended finance for landscape-scale tiger conservation across six Asian tiger-range nations. Current affairsGollala Gudi Temple in Telangana Declared Monument of National Importance by ASI — Kakatiya Heritage Near Ramappa UNESCO SiteThe Archaeological Survey of India (ASI) has declared the Gollala Gudi temple complex in Palampet village, Mulugu district, Telangana, a Monument of National Importance — bringing ASI-protected sites in the state to 10. The Kakatiya-era temple, featuring three sanctums with a Shiva Lingam, is located near the UNESCO World Heritage Ramappa Temple. Current affairsIndia's GDP Grows 7.8% in Q1 FY2026-27: Manufacturing and Services Drive Expansion, Beats RBI ForecastIndia's real GDP grew 7.8% in Q1 FY2026-27 (April–June 2026), as per MoSPI data released on 31 August 2026, surpassing both the RBI's 7% estimate and a Reuters poll forecast of 7.1%. Nominal GDP rose 10.3% to ₹88.27 lakh crore, driven by strong manufacturing (9.2%), financial services (12.1%), and construction (7.7%) growth. Current affairsG20 Finance Ministers and Central Bank Governors Meeting, Asheville 2026: Debt Restructuring, Digital Assets, Cross-Border Payments, and India's Priorities Under the US PresidencyG20 Finance Ministers and Central Bank Governors met at Asheville, North Carolina, USA on 31 August – 1 September 2026 under the 2026 US G20 Presidency. India's Finance Minister Nirmala Sitharaman participated, with key agenda items spanning debt transparency, global imbalances, digital asset regulation, cross-border payments reform, and private-sector-led growth — each with significant implications for India's financial diplomacy and economy.
In previous-year questions
- The 16th Finance Commission, which recommended including heatwaves and lightning as SDRF-eligible natural calamities, covers which award period and is chaired by whom?UPSC · Current Affairs
- The Supreme Court's September 2026 direction to raise district judges' retirement age was primarily motivated by which of the following reasons given by the Court?UPSC · Current Affairs