Issues and Recommendations of Twelfth Finance Commission

Contents: Foreword. Acknowledgements. 1. Introduction/R. Sudarsana Rao. 2. Twelfth Finance Commission: Issues and recommendations/D.K. Srivastava. 3. Issues and approach: an appraisal/J.V.M. Sarma. 4. Horizontal fiscal transfers in India: an analysis of Finance Commissions approach/N. Sreedevi. 5. Finance Commission Awards horizontal equity vs. regional disparity/Jagannath Lenka and Minati Mallick. 6. State level fiscal reforms and the recommendations of the Twelfth Finance Commission--a note/A.C.K. Nambiar. 7. Devolution of tax revenue--a review of the Finance Commissions/G. Satyanarayana and M. Reddi Ramu. 8. Grants-in-Aid under Twelfth Finance Commission in India/Chandraiah Miriyala, Appala Naidu Gullipalli and N. Suryanarayana. 9. States debt burden, Twelfth Finance Commission and debt relief/V.P. Gupta. 10. Important recommendations of the Twelfth Finance Commission/E. Nagabhusana Rao, M. Chandrayya, M. Sankara Reddi and M. Ramesh. 11. Twelfth Finance Commission and incentives for fiscal reform program of backward states in India: a study of Orissa/Bhagabata Patro. 12. Problems and prospects of Central Grants for debt sustainable, deficit stable and maximum growth: a case study of Orissa/S.S. Rath. 13. Decentralization and devolution of resources to local governments: central Finance Commission approach/O.P. Bohra. 14. Grants to Panchayats-Twelfth Finance Commission/B. Jhansi Lakshmi. 15. Grants to local bodies--a comparative analysis of two Finance Commissions/G. Nanaji Rao and P. Srinivasa Rao. 16. Financing of calamity relief expenditure of the states and recommendations of the Twelfth Finance Commission/M. Nageswara Rao, R. Sudarsana Rao, K. Radha Pushpavathi. 17. Women in Twelfth Finance Commission/B. Ratna Kumari and A. Rajani. 18. Twelfth Finance Commission recommendations on Panchayats and municipalities/Shamshuddin Shaik and Khadar Baba Shaik. 19. Twelfth Finance Commission for fiscal democracy/A. Ranga Reddy. 20. Centre-state financial relations in India--a comment/M. Prasada Rao and T. Koteswara Rao. 21. Andhra Pradesh and Twelfth Finance Commission (AP and TFC)/M.L. Kantha Rao. 22. Twelfth Finance Commission--Grants for education and health--the case of Andhra Pradesh/K. Ranigopal, R. Sudarsana Rao and B. Sailaja Kumari. 23. Need for education grant to Andhra Pradesh/P. Tara Kumari. 24. Devolution of funds to local bodies in A.P./Lilly Grace Bodapati and Addai Biddiki. 25. Fiscal plight of urban local bodies--an analysis of fiscal imbalance of Bhimavaram municipality/G. Durga Prasad. 26. Trends in expenditure and income patterns in Andhra Pradesh/N.B. Reddy and D. Pulla Rao. 27. Fiscal management in Andhra Pradesh--an analysis/D. Atchyutam. 28. Debt management scenario in Andhra Pradesh/Surya Rao Kappagantula. 29. Fiscal responsibility and budget discipline in Andhra Pradesh--the challenges ahead/B. Lilly Grace Eunice and P. Krishna Babu. Index.

"Vertical and horizontal fiscal imbalances exist in the Indian Union. Successive Finance Commissions have been playing an important role in reducing these fiscal imbalances by transferring fiscal resources to States. As States differ in their endowments as well as in efforts, a suitable criteria need to be evolved by the Finance Commissions striking a balance between equity and efficiency. As there is and there can be no final solutions to fiscal problems in a federation, a continuous effort is needed to evolve principles for Inter se distribution. Twelfth Finance Commission, the latest Central Finance Commission, has made several important recommendations having an important bearing on the finances of the States as well as on the Centre. This in turn does influence the Centre-State financial relations in India. Therefore, the present volume makes an attempt to critically analyze important issues and recommendations relating to the percentage share and criteria of shared tax revenue, the quantum, category and the principles of grants-in-aid, debt relief, financing of calamity relief of States, upgradation grants etc. Impact of the recommendations on States' finances especially, that of Andhra Pradesh and Orissa has been focused. 

This edited volume will be of interest and useful to students, scholars, academics and administrators working in the area of public finance and public administration in general and Center-State financial relations in India in particular." (jacket)