Tag Archive | Y V Reddy

14th Finance Commission: Some Challenges

The Constitution provides for a Finance Commission under Article 280, in order to facilitate the mechanism of transfer of funds and resources between the Centre and states. The Finance Commission is to address the vertical imbalance- between Centre and states- as well as the horizontal imbalances- the one between the states with varying degree of fiscal capability but similar responsibilities.

The 14th Finance Commission was announced in 2013, with Y. V. Reddy as its Chairman. It’s recommendations would be applied for the period 2015-16 to 2019-20.

An important issue, which has given birth to several debates, is the growing dominance of the centre at the cost of the autonomy of the states. Read More…