Finance Commissions are constitutional bodies in India. They are established every five years. Their primary role is to recommend the distribution of tax revenues between the central and state governments. They assess the financial needs of states. They also evaluate the fiscal health of the country. These commissions play a crucial role in maintaining fiscal balance and promoting equitable development across regions.
India’s system of sharing central tax revenues with States is once again under scrutiny. With the recommendations of the 16th Finance Commission yet to be tabled, debates around...
