Sixteenth Finance Commission and Fiscal Federalism
Summary
- The Sixteenth Finance Commission is a constitutional body responsible for reviewing the financial relations between the centre and states.
- Its core mandate is to act as an equalising force within the federation, addressing vertical and horizontal imbalances.
- The Commission's recommendations have a significant impact on the distribution of resources among states.
Key Facts
- · Sixteenth Finance Commission
- · Fiscal federalism
- · Vertical and horizontal imbalances
- · Constitutional body
- · Centre-state financial relations
Why it matters
The Sixteenth Finance Commission's recommendations can affect the financial autonomy of states and the overall fiscal health of the country.
#Fiscal federalism#Finance Commission#Centre-state relations#Constitutional body