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

Twelfth Finance CommissionSubscribe to Twelfth Finance Commission

Twelfth Finance Commission and Panchayat Finances

Some issues for the consideration of the Twelfth Finance Commission in regard to its task of making recommendations to augment the Consolidated Fund of the states in order to supplement the resources of panchayats and municipalities.

Finance Commission

The quiet indifference with which the appointment of the Twelfth Finance Commission has been greeted in academic and state government circles bears testimony to the decline of the Finance Commission as a constitutional institution. Against this backdrop it is useful to try to understand the true intentions of the framers of the Constitution and to bring out the many ways in which powerful sections of society have manipulated the composition, terms of reference and even the recommendations of successive Finance Commissions to serve sectional and regional interests.

Twelfth Finance Commission

Considerations of making the recommendations of the Twelfth Finance Commission more effective require the new commission to (1) remove the artificial restrictions imposed on the finance commissions' scope of operations; (2) keep in view overall macroeconomic stability; (3) streamline management of government debt; (4) provide for appropriate incentives for inducing fiscal responsibility; (5) take a broader and integrated view of tax assignments; and (6) provide operational guidelines for the state level finance commissions.
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