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Conclusions and Suggestions

In: Fiscal Decentralization in India

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  • V N Alok

    (Indian Institute of Public Administration)

Abstract

Chapter 5 presents key observations from the examination of SFC reports. It is unfortunate that most states have considered the appointment of SFC as one of the instruments through which they can please or appease the group of favourites either from bureaucracy or from the close political group of the ruling party. It is expected from any finance commission, be it a central or state one, to evolve a mechanism so that a fine blend of equity and efficiency objectives can be achieved in fiscal transfers. Only this kind of devolution mechanism can promote autonomy and accountability of the local governments. A system of rewards and punishment has to be developed in the state and the SFCs have to initiate and evolve this mechanism. The working of SFCs could be improved further through a concerted effort of union and state governments as well the SFCs themselves.

Suggested Citation

  • V N Alok, 2021. "Conclusions and Suggestions," Springer Books, in: Fiscal Decentralization in India, chapter 0, pages 117-122, Springer.
    • Handle: RePEc:spr:sprchp:978-981-16-2203-8_5
    DOI: 10.1007/978-981-16-2203-8_5
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