New Approaches to Fiscal Federalism in India. Issue 2 (December 2019)

• Record Type: Journal Article
• Authors: Reddy, Y. V.
• Is Part Of: Review of development and change. Volume 24:Issue 2(2019)
• Page Start: 163
• Page End: 186
• Publication Date: 2019-12
• Subjects: Public finance -- Finance Commission -- federalism -- taxation -- macroeconomic policy -- state government; India -- Economic conditions -- 1947- -- Periodicals; India -- Economic policy -- 1947- -- Periodicals; 330.954005
• DOI: 10.1177/0972266119884360
• Languages: English
• ISSNs: 0972-2661

Abstract

Abstract: Fiscal federalism in India has been impacted considerably by recent events, in particular, the implementation of the award of the 14th Finance Commission (FC), the implementation of Goods and Services Tax, the replacement of the Planning Commission with the NITI Aayog and the terms of reference of the 15th FC. This article examines the issues unfolding from the developments, analyses the new approaches suggested by economists and policymakers and proposes a way forward that synthesises the approaches, while taking account of the lessons of experience. I argue that FC being the bedrock of fiscal federalism in India, it is necessary to strengthen the hands of FC to give an award that is fair and acceptable to the union and states.