Centre-State Financial Relations: A Study on the Role of Finance Commission
Journal Title: VISION: Journal of Indian Taxation - Year 2017, Vol 4, Issue 1
Abstract
A federal economy is usually characterised by the emergence of imbalances between functional responsibilities and financial resources of different tiers of government. Vertical imbalances in terms of resources and expenditure responsibilities emerge between different levels of government calling for transfer of resources from the Centre to the States. Thus, intergovernmental transfers are an inherent part of a multi-level fiscal system. In India, Finance Commission constitutes an important channel of Central transfers to the states. This paper looks at the role of Finance Commission regarding the devolution of taxes between the Center and the States from the divisible pool. In particular, the paper focuses on the Fourteenth Finance Commission FFC that has made far-reaching changes in tax devolution that will move the country towards greater cooperative as well as competitive federalism.
Authors and Affiliations
Niti Bhasin
Keywords
Related Articles
- EP ID EP623220
- DOI 10.17492/vision.v4i01.9994
- Views 292
- Downloads 0
Efficiency in Value Added Tax in Sub-National Governments in India: An Empirical Analysis
The present study attempts to analyse whether the VAT efficiency has improved after its implementation. Further, we examine the major determinants of VAT efficiency for 17 non-special category Indian states for the perio...
Tax Planning and Investment Pattern of Academicians: A Study of Educational Institutions in Bengaluru
Tax planning involves an efficient application of various provisions and loopholes of tax laws to reduce the incidence of tax and tax burden of an assessee. This research paper aims at studying the investment pattern an...
Technological Infrastructure and Institutional Set-up for Effective Implementation of GST
The effective implementation of GST, which is a landmark reform in the history of indirect taxation in India requires, a sound tax administration infrastructure that focuses on simplification as well as compliance. In li...
Intra Group Services: Need for a Uniform Transfer Pricing Regime
Intragroup services form one of the trickiest areas in transfer pricing regulation owing to the internal and routine nature of these activities. Instances of false invoicing and tax evasion are rampant as national tax au...
GST and the Paradigm Shift: A Peripheral View
The Goods and Services Tax (GST) has been touted as the single biggest tax reform in the Republic of India. The GST Act proposes to replace all the indirect taxes with a single GST. The profound positive impact of the Ac...