2015
DOI: 10.21648/arthavij/2015/v57/i4/111493
|View full text |Cite
|
Sign up to set email alerts
|

Paradox of Fiscal Imbalances:Recommendations of Fourteenth Finance Commission

Abstract: 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 … Show more

Help me understand this report

Search citation statements

Order By: Relevance

Paper Sections

Select...
2
1
1
1

Citation Types

0
11
0

Year Published

2023
2023
2023
2023

Publication Types

Select...
1
1

Relationship

1
1

Authors

Journals

citations
Cited by 2 publications
(11 citation statements)
references
References 0 publications
0
11
0
Order By: Relevance
“…When neutral criteria advocate for equal per capita share, equity favours low-income states and efficiency gives preference to high-income states. An increase in the proportion of vertical devolution and optimum weight solution of equity and efficiency for horizontal distribution as suggested by Mahamallik and Sahu (2015) may be helpful to reduce fiscal imbalances in the country.…”
Section: Discussionmentioning
confidence: 99%
See 4 more Smart Citations
“…When neutral criteria advocate for equal per capita share, equity favours low-income states and efficiency gives preference to high-income states. An increase in the proportion of vertical devolution and optimum weight solution of equity and efficiency for horizontal distribution as suggested by Mahamallik and Sahu (2015) may be helpful to reduce fiscal imbalances in the country.…”
Section: Discussionmentioning
confidence: 99%
“…Even though the volume of shared taxes has increased through widening of the domain of shared taxes over successive commissions, vertical imbalance has not declined. In a similar manner, policy paradox arising from methods used for inter-se distribution of shared taxes among states increases horizontal imbalance even after a series of reforms (Mahamallik & Sahu, 2015). 7 In addition, to deal with horizontal and vertical imbalance, different commissions have made recommendations on different directions, as directed by the President of India.…”
Section: Contextmentioning
confidence: 99%
See 3 more Smart Citations