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Federal Fiscal Transfers on Health: Implications of Fourteenth Finance Commission Recommendations at Subnational Level


  • Das, Nimai


This article is based on a study of Public Expenditure Review of Health Spending in Selected States of India as part of research project Strengthening Ecosystem for Sustainable and Inclusive Health Financing in India (SESSIHFI). It is observed that the growth of tied fund to health in real term is much lower than the untied one during 14th FC period irrespective of category of states as EAG and Non-EAG. In search of the root of such shrinkage in tied component, it observed that there is a negative growth of central tied transfer to health between 13th to 14th FCs in both EAG and Non-EAG states. A very comprehensive level of analysis using Demand for Grant of several state-budgets since 2010-11 to till date shows that while the growth of tied fund directly devoted to communicable diseases is affirmative (excepting Chhattisgarh), a serous negative growth of expenditure on non-communicable diseases is observed for most of the EAG states and a few Non-EAG states during 14th FC period.

Suggested Citation

  • Das, Nimai, 2016. "Federal Fiscal Transfers on Health: Implications of Fourteenth Finance Commission Recommendations at Subnational Level," MPRA Paper 79627, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:79627

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    References listed on IDEAS

    1. Chakraborty, Pinaki, 2011. "Deficit Fundamentalism vs Fiscal Federalism: Implications of 13th Finance Commission's Recommendations," Working Papers 11/81, National Institute of Public Finance and Policy.
    2. 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.
    3. Nimai Das, 2015. "Subnational level fiscal health in India: stability and sustainability implications," Economic Change and Restructuring, Springer, vol. 48(1), pages 71-91, February.
    4. C. Rangarajan & D. K. Srivastava, 2008. "Reforming India’S Fiscal Transfer System: Resolving Vertical And Horizontal Imbalances," Working Papers 2008-031, Madras School of Economics,Chennai,India.
    5. Bagchi, Amaresh & Chakraborty, Pinaki, 2004. "Towards a rational system of centre-state revenue transfers in India: An exploration," Working Papers 04/16, National Institute of Public Finance and Policy.
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    More about this item


    Intergovernmental transfers; public health; subnational states; federal policy;

    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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