Sixteenth finance commission limits fiscal capacity of states
By: Sixteenth Finance Commission
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Material type: 
BookPublisher: Economic & Political Weekly Description: 61(19), May 9, 2026: p.37-38.
In:
Economic & Political WeeklySummary: The report of the Sixteenth Finance Commission has received a muted but mixed response. The overall tone was disappointing, mainly because the commission failed to recommend any increase in the devolution of union government taxes to the states. By continuing with the 41% share of union taxes to the states—a revision made after the change in the status of Jammu and Kashmir—the commission has failed to correct the declining share of devolution as a percent of the total revenues of the union government, and also its share in the gross domestic product (GDP). Consequently, it was unable to increase the fiscal space available to the states. This forces the states to fend for themselves and raise the additional revenues, to meet their growing expenditures and reduce their debt burdens.- Reproduced
https://www.epw.in/journal/sixteenth-finance-commission/sixteenth-finance-commission-limits-fiscal.html
| Item type | Current location | Call number | Vol info | Status | Date due | Barcode |
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Articles
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Indian Institute of Public Administration | 61(19), May 9, 2026: p.37-38 | Available | AR139185 |
The report of the Sixteenth Finance Commission has received a muted but mixed response. The overall tone was disappointing, mainly because the commission failed to recommend any increase in the devolution of union government taxes to the states. By continuing with the 41% share of union taxes to the states—a revision made after the change in the status of Jammu and Kashmir—the commission has failed to correct the declining share of devolution as a percent of the total revenues of the union government, and also its share in the gross domestic product (GDP). Consequently, it was unable to increase the fiscal space available to the states. This forces the states to fend for themselves and raise the additional revenues, to meet their growing expenditures and reduce their debt burdens.- Reproduced
https://www.epw.in/journal/sixteenth-finance-commission/sixteenth-finance-commission-limits-fiscal.html
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