Federal Fiscal Relations in India

Federal fiscal management, in particular the sharing and distribution of financial and economic powers among different layers of a government, has been a challenging issue for a long time across the world and particularly in India. There is a strong need for a complete revamping of the federal fiscal arrangements for inter-governmental transfers in India. Federal Fiscal Relations in India aims to derive and suggest fundamental reforms in the federal fiscal sharing system for India, taking into account the possible changes in the structure of the economy and the potential revenue generation at different levels of a government. It closely reviews the evolution of the federal fiscal management system in India and the country-wide practices of the federal fiscal transfer systems. The basic flaws in the system, especially the absence of scientific approach in determining the vertical and horizontal shares and the lack of monitoring of the sharing process, are explained in detail. This well-illustrated book will prove indispensable for all stakeholders in ensuring a balanced sharing of inter-governmental resources and an equitable centre-state relationship.