000 01273nam a22001457a 4500
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100 _aSahu, Pareswar
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245 _aHorizontal distribution of federal transfers: Unpacking the population criterion
260 _aEconomic & Political Weekly
300 _a60(25), Jun 21, 2025: p.19-21
520 _aHorizontal fiscal imbalance across the states in India persists due to differences in resource endowments, population composition, geographical and climatic conditions, tax effort, level of development and the policy paradox. Investigating the nature of the population criterion used by successive finance commissions, this article argues that the assignment of equal weightage to active and inactive populations in a state increases horizontal fiscal imbalance. The population composition criterion, which assigns significant weight to inactive population, with minor weight to active population, ensures due share to each state and may be a better choice for addressing imbalance. - Reproduced https://www.epw.in/journal/2025/25/commentary/horizontal-distribution-federal-transfers.html
650 _apopulation, population criterion, census,
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773 _0Economic & Political Weekly
942 _cAR