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 affairsBihar Water Sources Restoration and Silt Management Policy 2026: Nadi Sanjivani Initiative ExplainedOn 3 November 2026, the Ministry of Road Transport and Highways (MoRTH) and the Government of Bihar signed an MoU to implement the Bihar Water Sources Restoration and Silt Management Policy, 2026 — branded "Nadi Sanjivani" (River Life-Restorer). The policy removes flood-deposited silt from agricultural land and rivers, using the excavated material in National Highway construction, addressing river health, flood risk, and infrastructure simultaneously. Current affairsWorld Tsunami Awareness Day 2026: "Be Tsunami Ready — Resilience Starts with You"November 5 is World Tsunami Awareness Day 2026, observed under the theme "Be tsunami ready: Resilience starts with you." The day, established by UNGA Resolution A/RES/70/203 (December 2015), commemorates the Inamura-no-hi story of 1854 and focuses on individual and community preparedness as the first line of defence, aligned with the Sendai Framework for Disaster Risk Reduction (2015–2030). Current affairsEU Carbon Border Adjustment Mechanism (CBAM) Enters Definitive Phase from January 2026: Implications for IndiaThe EU Carbon Border Adjustment Mechanism (CBAM) entered its definitive phase on 1 January 2026, requiring EU importers to purchase carbon certificates for embedded emissions in steel, aluminium, cement, fertilisers, electricity, and hydrogen. India — the third-largest exporter of CBAM-covered goods to the EU — faces direct impact on its steel and aluminium exports. India has challenged CBAM at the WTO and, alongside BRICS partners, labelled it a "unilateral, punitive" trade barrier. Current affairsMoPR–CESL MoU: Panchayat Land to Host EV Charging Stations for Rural Clean MobilityThe Ministry of Panchayati Raj (MoPR) and Convergence Energy Services Limited (CESL) signed a Memorandum of Understanding (MoU) on 30 October 2026 to establish electric vehicle (EV) charging and battery-swapping stations on Panchayat land across India. The initiative aims to advance rural clean mobility while generating Own Source Revenue (OSR) for Gram, Block, and District Panchayats. Current affairsSEBI Introduces Framework for REITs and InvITs to Issue Depository Receipts at GIFT City IFSCSEBI issued Circular No. HO/17/11/19(7)2026-DDHS-RAC/I/24930/2026 on 2 November 2026, introducing a framework that allows Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) to issue foreign currency-denominated Depository Receipts (DRs) listed on exchanges at GIFT City's International Financial Services Centre (IFSC). This enables Indian infrastructure and real estate assets to access global capital pools directly. Current affairsProject 28A: Ministry of Defence Signs ₹53,866 Crore Contract for Eight Next Generation Corvettes with GRSE and GSLThe Ministry of Defence signed contracts worth ₹53,866 crore on November 2, 2026, with Garden Reach Shipbuilders & Engineers (GRSE) and Goa Shipyard Limited (GSL) for the construction of eight Next Generation Corvettes (NGC) under Project 28A, India's largest-ever warship procurement by domestic shipyards and a landmark in Atmanirbhar Bharat in defence manufacturing. Current affairsCyclone Arnab: Landfall on Andhra Pradesh Coast, Massive Evacuations, and Inter-Ministerial Damage AssessmentCyclone Arnab, a Very Severe Cyclonic Storm, made landfall near Narsapur on the Andhra Pradesh coast on October 28, 2026, with winds of 125–135 kmph; it caused extensive damage across Andhra Pradesh and Odisha, evacuating over 89,000 people. On November 2, an eight-member Inter-Ministerial Central Team led by Joint Secretary Ravi Shankar began a three-day assessment of damage in Odisha's southern districts. Current affairsGST Amendments Under Finance Act 2026 Effective November 1: Post-Supply Discounts, Export Refunds, and Inverted Duty Relief SimplifiedThe Central Board of Indirect Taxes and Customs (CBIC) notified November 1, 2026, as the effective date for Sections 153 to 155 of the Finance Act, 2026, bringing three significant GST amendments into force: simplification of post-supply discounts (Section 15 CGST), credit note and ITC reversal rules (Section 34 CGST), and removal of the ₹1,000 minimum export refund threshold plus extension of provisional 90% refunds to inverted duty structure cases (Section 54 CGST). Current affairsCotton Import Customs Duty Exemption Extended to December 31, 2026: CBIC Notification 35/2026 ExplainedThe Government of India extended the exemption from Basic Customs Duty (BCD) and Agriculture Infrastructure and Development Cess (AIDC) on cotton imports until December 31, 2026, through CBIC Notification No. 35/2026-Customs dated October 30, 2026. The measure, covering cotton under HS Tariff Heading 5201, is designed to augment raw cotton availability for the domestic textile sector, ease input cost pressures on spinning mills and MSMEs, and maintain India's competitiveness in global textile and apparel markets. Current affairsWorld Bank Poverty and Equity Brief October 2026: India Lifted 496 Million from Poverty — One of the Fastest Declines GloballyThe World Bank's October 2026 Poverty and Equity Brief reports that India lifted an estimated 496 million people out of poverty between 2011 and 2023, with the share living in extreme poverty falling from 27.1% to 2.6% — described as one of the fastest poverty declines in the world. The Multidimensional Poverty Index (MPI) fell from 53.8% (2005–06) to 16.4% (2019–21), though wage stagnation and geographic concentration of poverty in eastern India remain key challenges. Current affairsCensus 2026–27: Population Enumeration from January 25 to February 28, 2027 — India's First Fully Digital Census ExplainedThe Registrar General and Census Commissioner of India has announced that the Population Enumeration phase of Census 2026–27 will be conducted from January 25 to February 28, 2027, with March 1, 2027 as the reference date. India's first fully digital census — with self-enumeration through a mobile app and Aadhaar-linked verification — follows the House Listing and Housing Census phase that commenced on April 1, 2026. Current affairsCyclone Arnab Makes Landfall in Andhra Pradesh: IMD Classification, Impact and Disaster ResponseVery Severe Cyclonic Storm "Arnab" crossed the Andhra Pradesh–Yanam coast near Narsapur on 28 October 2026, packing sustained winds of 125–135 kmph gusting to 150 kmph. Three people died, approximately 57,000 were evacuated, and crops were damaged across 70,900 hectares. The India Meteorological Department (IMD) issued Red Alerts for coastal Andhra Pradesh, Yanam, and Odisha.
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
- Under which Article of the Indian Constitution is the President empowered to establish an Inter-State Council for inquiring into disputes between States and recommending measures for coordination?UPSC · Current Affairs
- Which of the following correctly describes the FRBM Act, 2003 and its relevance to India's high GDP growth projections?UPSC · Current Affairs
- The Disaster Management Act 2005 established the State Disaster Response Fund (SDRF). For general (non-special category) states, what proportion of the SDRF is funded by the Central Government?UPSC · Current Affairs
- The 15th Finance Commission, in its report covering 2021–26, made specific recommendations about Own Source Revenue (OSR) for Panchayats. Which of the following best describes its recommendation regarding OSR and grants to Panchayati Raj Institutions (PRIs)?UPSC · Current Affairs