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A Fair Plan Approach For Devolution Under The Twelfth Central Finance Commission: Some Suggestions

Listed author(s):
  • Abhay Pethe


  • Mala Lalvani

This study has made some suggestions for the consideration of the Twelfth Finance Commission. We have provided a conceptual framework comprising eight cardinal principles abbreviated as FAIR PLAN. We have also operationalised the framework and provided a computational algorithm for inter se distribution of the states share in central taxes. The devolution scheme has been illustrated using 4 states of Maharashtra, Tamil Nadu, Madhya Pradesh and Bihar as representatives of different income categories. The scheme of devolution suggested by us has been worked upon and laid out in a user friendly fashion so as to give complete flexibility for any one to modify the scheme at every stage.

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Paper provided by eSocialSciences in its series Working Papers with number id:44.

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Date of creation: Aug 2005
Handle: RePEc:ess:wpaper:id:44
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