Arvind Subramanian: If this were the First Finance Commission!

How much tax revenues should prosperous states be expected to transfer to the less well-off? The answer to this question is inevitably political.

Arvind Subramanian

Arvind Subramanian

Arvind Subramanian
India is changing: From many fragmented economic Indias to one integrated India; from a more centralised political India to many quasi-sovereign Indias. As a result, its fiscal arrangements, especially on tax sharing, need to evolve. But in what direction? That is the unenviably difficult question facing the Fifteenth Finance Commission (FFC) under the chairmanship of N K Singh.
Already, a controversy has arisen. Initial salvos were fired by a number of Southern states. Their concerns were expressed in technicalities, namely the particular criteria the FFC should use, and their precise definitions. But the underlying issue is a serious one:
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of or the Business Standard newspaper

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Jul 23 2018 | 5:54 AM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers.

Register to