Unit-10 Fiscal Federalism

In this unit, we discuss: (i) the principles on which the devolution of functions and revenue sharing is based; (ii) the types of fiscal imbalance that arises in the process and methods by which fiscal adjustment are sought to be established; and (iii) the institutional arrangements that exist in India to recommend the norms for effecting fiscal transfers and allocate the budgetary resources among the states in the federal system.