Debating Contribution vis-Ã -vis Equity Principle in Tax Sharing: A Review of Recommendations of the Finance Commission of India
Polly Datta
South Asian Journal of Macroeconomics and Public Finance, 2012, vol. 1, issue 2, 281-318
Abstract:
This article discusses the objectives of the Finance Commission of India since inception, within the ambit of critical issues in public finance. Amidst increasing political tensions between the central and state governments in India and waning trends in single party majority at the Centre, the evolution of tax sharing arrangements are critical indi- cators of a functional federal structure. The article compares various objectives put forth by the Finance Commission and evaluates observed conditions in four important states in the country. We carefully evaluate if the recommendations of the Finance Commission have influenced the degree of industrialization in these states.
Keywords: Finance Commission; public finance; tax sharing; industrialization; India (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:sae:smppub:v:1:y:2012:i:2:p:281-318
DOI: 10.1177/2277978712473404
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