Author: Rahul Khichi, Student, LLM, Gujarat National Law University, Silvassa Campus
ABSTRACT
This paper will examine the essential role of Finance Commissions in a federal system, as they allocate resources between the central and state governments. It will look at how India is governed by different Finance Commissions in terms of constitutional architecture and progressive history. This research explains their responsibilities, tasks and mechanisms for determining resource allocation. The paper looks at how recommendation of finance commission affects fiscal federalism, intergovernmental relations and unevenness of development among regions. The aim is to know about difficulties, contradictions, and possibilities connected with functioning of Finance Commissions that help in fair distribution of resources among all levels of governments and achieve financial independence for them. In this research we discuss how these constitutional organs ensure equitable sharing out public funds in an extensive way between central government on one hand and states on the other hand such that regional imbalances are reduced while meeting national objectives.
Keywords: Finance Commission, Resource Allocation, Federalism, Fiscal Equity, India.
