Contents: Preface. 1. Centre-state financial relations: Theoretical Framework. 2. Pre-independence developments and post-partition financial adjustments. 3. Financial relations under the constitution and the roles of planning commission and finance commission. 4. Trends in combined (Centre and states) Tax revenues. 5. Trends in central taxes. 6. Trends in state taxes. 7. Sales tax and state level VAT. 8. Taxation of agricultural income. 9. Sharing of revenue from certain central taxes: arrangements prior to the recommendations of the eleventh finance commission. 10. Constitution (Eightieth Amendment) Act, 2000 and the sharing of revenue from all Central Taxes. 11. Additional duties of excise in Lieu of Sales Tax. 12. Grant in Lieu of railway passenger fares tax. 13. Grants-in-aid of revenues. 14. State-local financial relations in India. 15. First finance commission. 16. Second finance commission. 17. Third finance commission. 18. Fourth finance commission. 19. Fifth finance commission. 20. Sixth finance commission. 21. Seventh finance commission. 22. Eighth finance commission. 23. Ninth finance commission. 24. Tenth finance commission. 25. Eleventh finance commission. 26. Twelfth finance commission. 27. Issues in centre-state financial relations. Appendices. Glossary of fiscal terms. Select bibliography. Indices. Name index. Subject index.
"India's present fiscal structure is the result of a gradual evolution, along decentralised lines, dating back to December 14, 1870 when the resolution of Lord Mayo, Viceroy of India, was issued. The Mayo resolution explained the scheme by which the Government of India envisaged enlargement of the powers and responsibilities of the provinces. The process of decentralisation of functions and finances in India will complete 140 years with the termination of the recommendations of the Twelfth Finance Commission in March 2010. This book traces the developments in the federal structure of India over this period.
Fiscal federalism is a subject of topical interest in India in view of some recent developments of historical importance. With the passage of the constitution (Seventy-third Amendment) Act, 1992, a uniform structure of Panchayats has emerged throughout the country. Similarly, the passage of the constitution (Seventy-fourth Amendment) Act, 1992 was a landmark in the history of municipal administration in India. As a result of these amendments, Panchayats and municipalities are now constitutional bodies forming the third tier of the federal polity of India.
Furthermore, the Constitution (Eightieth Amendment) Act, 2000, significantly changed the manner of distribution of Central tax collections between the Central and State Governments. Prior to this amendment, income tax and union excise duties were the only taxes shared with the states. This amendment altered the pattern of sharing of Central taxes between the Centre and the states by providing for the sharing of the net proceeds of all Union taxes and duties with the states. Still further, the Constitution (Eighty-eighth Amendment) Act, 2003 has included 'taxes on services' under entry 92C in the Union List (List I) in the seventh schedule of the constitution.
This work provides a detailed description and analysis of the evolution and the present nature of Centre-state financial relations in India. It explains the existing constitutional arrangements for intergovernmental financial transfers and the role of the finance commission and the Planning Commission in effecting these transfers. The book consists of 27 chapters which explain different dimensions of fiscal federalism in India. There are 8 appendices which provide supplementary information related to centre-state financial relations in India. Besides, it contains time-series date (1950-51 to 2007-08) on India's public finances. It also includes a glossary of fiscal terms.
This reference work is useful for teachers and students of economics, commerce, public administration, and management. It will also serve the needs of legislators, government functionaries and those in industry and trade." (jacket)