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Fiscal Federalism in India - Impact of Union Transfers on State Finances (Hardcover)
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Fiscal Federalism in India - Impact of Union Transfers on State Finances (Hardcover)
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Fiscal federalism deals with financial arrangements and their
working in a federal polity. In India, federalism is not only a
unifying but also a levelling up force because considerable
economic inequalities exist among different States of India. This
work provides broad contours -- including historical evolution --
of fiscal relations between the Central and State Governments in
India. It explains operational aspects of fiscal federalism in
India. More importantly, it empirically examines the effects of
federal transfers on tax efforts of 14 major Indian States, viz.
Andhra Pradesh, Bihar, Gujarat, Haryana, Karnataka, Kerala, Madhya
Pradesh, Maharashtra, Orissa, Punjab, Rajasthan, Tamil Nadu, Uttar
Pradesh and West Bengal. The analysis has been done in the context
of the use of tax effort as a criterion for inter-se distribution
of States share of Central revenues by various Finance Commissions.
The book provides an in-depth understanding of the two vital
concepts of tax effort and tax capacity and the alternative
quantitative techniques that can be employed to estimate them.
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