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LATEST NEWS UPDATES | A considered balance

A considered balance

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published Published on Feb 4, 2021   modified Modified on Feb 4, 2021

-The Indian Express

Finance Commission has taken a judicious approach in weighing competing needs of Centre and states

The terms of reference of the 15th Finance Commission were controversial and contentious. Several state governments had raised concerns over what they saw as attempts by the Centre to claw back the fiscal space and autonomy extended to them by the 14th Finance Commission. The concerns centred not only on the vertical (between Centre and states) and horizontal (between states) devolution of resources, but also other areas such as the creation of a separate fund for defence modernisation, the provision of performance-based incentives and grants in line with the Centre’s priorities, and imposition of conditionalities on state borrowings. While there was much apprehension over the shape its recommendations would take, in its report, the Finance Commission appears to have taken a considered approach in balancing the competing needs of the Centre and states.

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The Indian Express, 4 February, 2021, https://indianexpress.com/article/opinion/editorials/finance-commission-2021-report-7173483/


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