In what ways are the terms of reference of the 16th Finance Commission different from that of the previous Finance Commissions? Despite increasingly progressive devolution by subsequent Finance Commissions, examine the factors that propel economic disparities across various States.
Main Body
Finance Commission is constituted every 5 years one or whenever prudent modify to help balance the uphill of fiscal federalism. (Article 280) Recently 15th F.C was constituted under the head of Atharind I to recommend on following items of reform
Increasingly progressive devolution by FC: 13th F.C → 38.I. of net tax proequedly 14th F.C → 42.1. of net tax proequedly 15th F.C → 44. of ... (cut off) (4.1: was divulged for U.T's J&K and ladakh) Factor that propel economic disparity: 1) Population difference: Northern states laik behind southern with 'population control' & here receive higher funds. TCE T.F.R of Bihar >, all ≥ 2.1b 2) Area of States: larger states receive higher funds compared poorer & poorer state TCE Arunachal.
— Sachin B.G
Sachin B.G
Federal Structure - Functions, Responsibilities, Devolution of Powers and Finances
Centre-State Financial Relations
Finance Commission and fiscal federalism
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