| 000 -LEADER |
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| fixed length control field |
02189pab a2200181 454500 |
| 008 - FIXED-LENGTH DATA ELEMENTS--GENERAL INFORMATION |
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| fixed length control field |
180718b2015 xxu||||| |||| 00| 0 eng d |
| 100 ## - MAIN ENTRY--PERSONAL NAME |
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| Personal name |
Mahamallik, Motilal |
| 245 ## - TITLE STATEMENT |
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| Title |
Paradox of fiscal imbalances: recommendations of Fourteenth Finance Commission |
| 260 ## - PUBLICATION, DISTRIBUTION, ETC. |
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| Date of publication, distribution, etc. |
2015 |
| 300 ## - PHYSICAL DESCRIPTION |
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| Extent |
p.301-320. |
| 362 ## - DATES OF PUBLICATION AND/OR SEQUENTIAL DESIGNATION |
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| Dates of publication and/or sequential designation |
Dec |
| 520 ## - SUMMARY, ETC. |
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| Summary, etc. |
The assignment of significant weight to equity criterion without any weight to efficiency criterion in the distribution of federal transfers across states by the Fourteenth Finance Commission may increase both vertical and horizontal fiscal imbalances. The imbalances have persisted mainly due to the assignment of significant weight to equity or efficiency criterion as well as the level of contradiction between the two. The use with significant weightage of either one of them is not feasible with the existence of high economic disparities across states. When the equity criterion is used with significant weight, high fiscal capacity states exhibit their status as 'deficient states' to avail of the benefit. Similarly the assignment of significant weight to efficiency criterion does not enable the poorer states to get their due share. These states try to maximize their share through the reduction of social and economic expenditure which further deteriorates their fiscal health. The simultaneous use of both criteria involves contradiction between themselves because when equity criterion is based on the deficiency in fiscal capacity, the efficiency criterion is based on the improvement of the fiscal capacity of the states. When equity is assigned significant weight rich states exhibit their status as 'deficient states' and when efficiency is assigned significant weight, poorer states show themselves as 'efficient states'. In both cases the criteria fail to achieve their objectives. An optimal weight is the only solution to minimize the level of effect of contradiction which may reduce fiscal imbalances. It assigns one-third weightage to efficiency and two-thirds to equity criterion. |
| 650 ## - SUBJECT ADDED ENTRY--TOPICAL TERM |
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| Topical term or geographic name entry element |
Finance Commission, 14th |
| 650 ## - SUBJECT ADDED ENTRY--TOPICAL TERM |
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| Topical term or geographic name entry element |
Public finance |
| 700 ## - ADDED ENTRY--PERSONAL NAME |
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| Personal name |
Sahu, Pareswar |
| 773 ## - HOST ITEM ENTRY |
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| Main entry heading |
Artha Vijnana |
| 909 ## - |
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| -- |
112371 |
