Sixteenth Finance Commission: Performance-Based Fiscal Transfers and Their Impact on Cooperative Federalism
Introduction The Finance Commission, constituted under Article 280, is a constitutional mechanism for addressing vertical fiscal imbalance between the Union and States and horizontal fiscal disparities among States, thereby strengthening India’s fiscal federal compact. The Sixteenth Finance Commission (FC-16), while retaining States’ share of the divisible pool at 41%, has significantly reoriented grants-in-aid towards local […]











