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Recommendations and Methodologies of SFCs: A Review

In: Fiscal Decentralization in India

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  • V N Alok

    (Indian Institute of Public Administration)

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.

Suggested Citation

  • V N Alok, 2021. "Recommendations and Methodologies of SFCs: A Review," Springer Books, in: Fiscal Decentralization in India, chapter 0, pages 33-92, Springer.
    • Handle: RePEc:spr:sprchp:978-981-16-2203-8_3
    DOI: 10.1007/978-981-16-2203-8_3
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