Public Debt and Fiscal Federalism

Quick-reference summary — for full depth, see our detailed UPSC notes.

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📖 Quick summary

Public debt = internal + external borrowing, governed by FRBM Act, 2003 targets. Article 280's Finance Commission (every 5 years) recommends tax devolution — the 16th Finance Commission covers 2026-27 onward. India has full current-account but only partial capital-account convertibility.

This national-framework topic is identical for TSPSC as it is for UPSC — for the full deep-dive with all the detail, follow the link above.

💡 Key Facts

FRBM Act (2003) sets debt/deficit sustainability targets.
16th Finance Commission = period from 2026-27.

🔖 60-Second Revision

Capital account convertibility remains partial (Tarapore Committee recommendations).