Tag Archives | Fiscal Federalism

10 Main Features of Indian Tax Structure

This article throws light upon the ten main features of Indian tax structure. Some of the features are: 1. The Scientific Division of Tax Powers 2. Multiplicity of Tax Structure 3. Larger share of Indirect Taxes 4. Insufficient Tax Revenue 5. Greater Importance to Sate Government in Federal Fiscal System 6. Incidence of Taxation 7. […]

Top 5 Tools for Inter-Governmental Resource Transfer

This article throws light upon the top five tools adopted for inter-governmental resource transfer. The tools are: Inter-Governmental Resource Transfer: Tool # 1. Tax Sharing: It is mode a in which a tax (or taxes) is levied by one agency and the proceeds distributed between different agencies. Generally the tax is collected by the central […]

Federal Finance: Concept, Principles and Problems

After reading this article you will learn about:- 1. The Concept of Federal Finance 2. Principles of Federal Finance 3. Problems. The Concept of Federal Finance: In usual parlance federation is defined as an association of two or more states. The federal setup is characterized by the existence of a union government (Central government) on […]

The Centre and State of India (Financial Relations)

After reading this article you will learn about the financial relations between the Centre and the State of India:- 1. Divisions of Powers 2. Distribution of Resources 3. Grants-in Aid 4. Loans. Divisions of Powers: The constitution lucidly lists the powers and functions of different layers of government. The seventh schedule of Indian Constitution, on […]

Problems: Financial Relations between the Centre and State

After reading this article you will learn about the problems in financial relations between the Centre and State of India with suggestions for balanced fiscal federalism. 1. Mounting Vertical Imbalance: Vertical imbalance emerges because of disproportionate alignment of revenue sources in relation to increasing expenditure obligations by level of government. There is a situation of […]

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