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Finance commission grants: Quantum, conditionalities, and absorption

By: Gupta, Manish Mahesh, Malvika and Chaudhary, Atrayee.
Material type: materialTypeLabelBookPublisher: Economic & Political Weekly Description: 60(18), May 3, 2025: p.50-56. In: Economic & Political WeeklySummary: Finance commissions recommend the sharing of taxes and grants-in-aid of revenues to states, predominantly in the nature of gap-filling grants. Over the years, although the number, scope, and coverage of the grants have increased, their share in finance commissions’ transfers remained small. Utilisation of sector-specific grants is found to be low in some sectors and concentrated in select states, and they are small compared to states’ expenditure on respective sectors to bring about any behavioural change in states. Additionally, the growing trend of attaching conditionalities to grants further reduces their utilisation. – Reproduce https://www.epw.in/journal/2025/18/sixteenth-finance-commission/finance-commission-grants.html
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Articles Articles Indian Institute of Public Administration
60(18), May 3, 2025: p.50-56 Available AR136041

Finance commissions recommend the sharing of taxes and grants-in-aid of revenues to states, predominantly in the nature of gap-filling grants. Over the years, although the number, scope, and coverage of the grants have increased, their share in finance commissions’ transfers remained small. Utilisation of sector-specific grants is found to be low in some sectors and concentrated in select states, and they are small compared to states’ expenditure on respective sectors to bring about any behavioural change in states. Additionally, the growing trend of attaching conditionalities to grants further reduces their utilisation. – Reproduce

https://www.epw.in/journal/2025/18/sixteenth-finance-commission/finance-commission-grants.html

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