ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Linking Central Grants to Revenue Deficit Reduction by States

If the central government thinks that simply by giving a directive to the Eleventh Finance Commission to design a transfer system linking transfers to revenue deficits it can solve the problem of the growing revenue deficits of the states, it is grossly mistaken. There are systemic problems affecting the states' finances and these need to be addressed. The transfer system alone cannot bear the burden of adjustment.

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