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Tax Devolution and Grant Distribution to States in India Analysis and Roadmap for Alternatives

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  • R Mohan
  • Shyjan D

Abstract

The paper attempts to analyse the impact of devolution of taxes and distribution grants by the Centre to the States in India by taking fourteen major States for the time period 1980-81 to 2006-07. The study focuses on the impact of inter- State distribution of Central grants and taxes. Analysis reveals that formula based tax devolution has been more equalising than grants. Study finds that there is need to explore alternative mechanisms. [WP 419].

Suggested Citation

  • R Mohan & Shyjan D, 2010. "Tax Devolution and Grant Distribution to States in India Analysis and Roadmap for Alternatives," Working Papers id:2421, eSocialSciences.
  • Handle: RePEc:ess:wpaper:id:2421
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    References listed on IDEAS

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    5. Wallace E. Oates, 1999. "An Essay on Fiscal Federalism," Journal of Economic Literature, American Economic Association, vol. 37(3), pages 1120-1149, September.
    6. Mueller,Dennis C., 2003. "Public Choice III," Cambridge Books, Cambridge University Press, number 9780521894753, May.
    7. C. Rangarajan & D. K. Srivastava, 2008. "Reforming India’s Fiscal Transfer System : Resolving Vertical and Horizontal Imbalances," Finance Working Papers 22509, East Asian Bureau of Economic Research.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    India; vertical and horizontal inmalance; finance commission; Gross Domestic Product; GDP; state; GSDP; service tax; indirect taxes; direct; central excise; revenue; devolution; taxes; grants; centre; states; distribution; taxes; devolution;
    All these keywords.

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