This study attempts to provide an alternative methodology to calculate the horizontal equalization transfers. This methodology follows the Australian horizontal equalization principle using a panel model methodology where both revenue and expenditure side considerations are involved. First, it...

This paper analyzes the inter-state imbalances in three major sectors of the economy, namely, education, health and family welfare, and water supply and sanitation for fifteen major states. It uses two principal indicators namely the per capita GSDP (reflecting the disparity in fiscal capacity...

This paper examines some of the relevant issues of resource sharing in the Indian federation, particularly in the context of the ongoing deliberations of the 13th Finance Commission. While the focus is on the southern states, in matters of fiscal transfers, a segmented view cannot be taken as...

Two central problems in a fiscal transfer systemrelate to resolving vertical and horizontal imbalances. In the context of the setting of the 13th Finance Commission, this paper looks at the methodological background of fiscal transfers followed by recent Finance Commissions in India,...