Economics • Indian EconomyHard
Analyze the structural features of the Goods and Services Tax Council established under Article 279A of the Constitution. How is voting power apportioned within the Council to maintain cooperative federalism?
A. The Union government holds a two-thirds majority vote, while all state governments combined hold a one-third majority vote.
B. The Union government holds one-third of the total votes, and all state governments combined hold two-thirds of the total votes.✓ Correct Answer
C. Every state holds an equal vote regardless of population or economic size, while the Union government holds a casting vote in ties.
D. Decisions require unanimous consent from all participating state finance ministers without exercising weighted voting.
💡 Solution & Explanation
Within the Goods and Services Tax Council, the vote of the central government carries a weight of one-third of the total votes cast, while the votes of all state governments combined carry a weight of two-thirds of the total votes cast. Decisions require a majority of not less than three-fourths of the weighted votes of members present and voting. This voting structure ensures that neither the Centre nor the states can unilaterally pass tax changes without broad consensus.
More Economics Indian Economy questions
- Which of the following is considered part of 'Capital Receipts' in the Government of India's budget?
- What does 'Current Account Deficit (CAD)' in India's balance of payments signify?
- Examine the economic rationale and criteria adopted by recent Finance Commissions for horizontal tax…
- Which constitutional document outlines the estimated receipts and expenditure of the Government of India for…
- Which of the following bodies replaced the erstwhile Planning Commission of India, functioning as the premier…