Recommendations and Methodologies of SFCs: A Review

V N Alok ()
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V N Alok: Indian Institute of Public Administration

Chapter Chapter 3 in Fiscal Decentralization in India, 2021, pp 33-92 from Springer

Abstract: Abstract Examination of over 76 SFC reports reveals that there is no uniformity in the presentation of the reports that makes them almost incomparable. Despite these vast inter-state variations in reports, the main recommendations of the SFCs are grouped into six major heads, viz. global sharing, assignment of revenues, horizontal distribution, grants-in-aid, functions and functionaries, and other measures. The chapter examines structures, approaches, methodologies, recommendations of SFCs within these heads and presents, in tabular forms, how they work across states. It is observed that the definition and size of divisible pool for global sharing of revenue differs across states whereas wide variation is noted in criteria adopted for horizontal distribution of resources. SFCs of all generations have recommended different types of grants which have varied substantially from one state to another in India.

Keywords: Global sharing; Divisible pool; India; Revenue assignment; Vertical distribution; Horizontal distribution; Grants (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-16-2203-8_3

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DOI: 10.1007/978-981-16-2203-8_3

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