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100 _aJha, Prakash Chandra
_960953
245 _aIntergovernmental transfers in India: Emerging challenges
260 _aIndian Journal of Public Administration
300 _a72(1), Mar, 2026: p.11-25
520 _aIntergovernmental transfers are the bedrock of India’s fiscal federalism. They balance the fundamental asymmetry between the centre and states regarding the authority to raise money and the responsibility to spend it. These transfers go to the states through two main avenues in India: the executive-led centrally sponsored schemes (CSS) and central sector grants and the constitutional Finance Commission (FC), which recommends tax devolution and grants-in-aid. This article highlights the increasing centralisation of authority, where the significant rise in non-shareable cesses and surcharges has effectively diminished the divisible tax pool. Article 282 of the Indian Constitution was meant to act as a backup plan for unforeseen emerging public needs. However, it has now become the primary mechanism for CSSs, sidelining the formula-driven transfers proposed by the FC. In India, intergovernmental transfers have not succeeded in addressing the regional economic disparities, highlighting the need for explicit equalisation transfers to ensure uniform public service standards nationwide. The ongoing institutional neglect of State Finance Commissions (SFC) remains a major hurdle at the sub-national level. Nevertheless, initiatives such as the Haryana Municipal Bill, 2025, and the Seventh SFC in Haryana, which uses real-time data to monitor migration, present a framework for enhancing state-local transfers through legislative unification and increased digital transparency.-Reproduced https://journals.sagepub.com/doi/full/10.1177/00195561261427561?_gl=1*7okur6*_up*MQ..*_ga*NDA0OTcwNTI1LjE3ODA0Njk2NTg.*_ga_60R758KFDG*czE3ODA0Njk2NTckbzEkZzEkdDE 3ODA0Njk3MjckajUxJGwxJGgxNjEwNTE5OTU0
650 _aIntergovernmental transfers, Finance commission, Centrally sponsored schemes, Article 282, State finance commission.
_960954
773 _aIndian Journal of Public Administration
942 _cAR