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

Author

Listed:
  • Abhay Pethe

    () (Department of Economics, Univeristy of Mumbai)

  • Mala Lalvani

    () (Department of Economics, Univeristy of Mumbai)

Abstract

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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Suggested Citation

  • Abhay Pethe & Mala Lalvani, 2003. "A Fair Plan Approach For Devolution Under The Twelfth Central Finance Commission: Some Suggestions," Department of Economics, University of Mumbai, Mumbai Working Papers 8, Department of Economics, University of Mumbai, Mumbai.
  • Handle: RePEc:ind:mudewp:8
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    File URL: http://mu.ac.in/arts/social_science/eco/pdfs/vibhuti/wp8.pdf
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    Cited by:

    1. Abhay Pethe, 2007. "Issues For The 13TH Finance Commission: Welcome To The Grey World Of Trade Offs!," Department of Economics, University of Mumbai, Mumbai Working Papers 27, Department of Economics, University of Mumbai, Mumbai.
    2. Abhay Pethe, 2008. "Financing The Panchayati Raj Institutions: Flagging Some Issues For The 13th CFC," Department of Economics, University of Mumbai, Mumbai Working Papers 34, Department of Economics, University of Mumbai, Mumbai.
    3. Abhay Pethe & Mala Lalvani, 2005. "Fiscal Health Of Maharashtra: A Stock Taking Exercise," Department of Economics, University of Mumbai, Mumbai Working Papers 17, Department of Economics, University of Mumbai, Mumbai.
    4. Abhay Pethe, 2009. "Financing the Panchayati Raj Institutions: Flagging Some Issues For The 13th CFC," Working Papers id:2245, eSocialSciences.
    5. Abhay Pethe & B.M.Misra & Rakhe.P.B, 2008. "STRENGTHENING DECENTRALIZATION - Augmenting the Consolidated Fund of the states by th Thirteenth Finacnce Commission: A NORMATIVE APPROACH," Department of Economics, University of Mumbai, Mumbai Working Papers 31, Department of Economics, University of Mumbai, Mumbai.
    6. Pethe, Abhay & Lalvani, Mala, 2005. "Fiscal situation in Maharashtra: An assessment, a critique, and some policy suggestions," Working Papers 05/28, National Institute of Public Finance and Policy.

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