Comments on the Paper ‘The Optimal Distribution Rule of Federal Funds to States in India: A Suggested Methodology’ by Raychaudhuri and Roy (2021)

Sudip Kumar Sinha

South Asian Journal of Macroeconomics and Public Finance, 2022, vol. 11, issue 2, 246-251

Abstract: The recent paper by Raychaudhuri and Roy (2021) in the South Asian Journal of Macroeconomic and Public Finance has been both timely and intensely thought provoking as it suggests an alternative approach for intergovernmental fiscal transfer in India. Fiscal transfers to subnational governments by the Finance Commissions in India is critical for maintaining the spirit of co-operative fiscal federalism in the country and is designed to improve the overall fiscal health of the economy. Rewarding the states for their efforts in improving public investment management would certainly help make the devolution rules for the Finance Commission time consistent and truly welfare- and growth oriented, and it would also help address the issue of vertical and horizontal gap in a more sustainable manner. JEL Classifications: H77, H71, E62, H72

Keywords: Tax and fiscal issues; public finance; applied economic theory; macroeconomics (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/22779787221083746 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:smppub:v:11:y:2022:i:2:p:246-251

DOI: 10.1177/22779787221083746

Access Statistics for this article

More articles in South Asian Journal of Macroeconomics and Public Finance
Bibliographic data for series maintained by SAGE Publications ().