A large amount of economic research has examined the impact of federal grants on state and local spending. Much of this previous research, however, has focused exclusively on the impact of federal grants on total state and local spending itself rather than on the extent to which federal grants...

This paper seeks to study the impacts of the recommendations of the Fourteenth Finance Commission (FFC) with respect to greater devolution of untied transfers from centre to states. This recommendation was made and carried on keeping in mind that the states should be granted greater flexibility...