Finance Commission - Business Outrank

Although the Finance Commission plays a very important role in formulation of fiscal policies of India, there are concerns regarding the transparency of the Commission. Fiscal transparency which guarantees the public access to financial information and decision making processes is a pre-requisite for systemic stability. The Finance Commission which is constituted every five years recommends tax transfers from the Union to the states but does so without much fanfare. The process is carried out internally and is not open to the public. The absence of a single portal that contains all the information also adds to this problem. Although each Commission develops a large number of statistics, the information is not collected and made available to the public in one place. This was recently confirmed by Professor Arvind Panagariya, the Chairman of the 16th Finance Commission who advocated for the creation of a data bank which other experts also welcomed. The Fourteenth Finance Commission also recognized the problem of reconciling the scope of the review with the need for clarity of documentation. For example, Indira Rajaraman and others have for a long time now complained of the lack of clarity in regard to tax sharing formulae. The transitions from one commission to another are often times made without much explanation which makes it difficult to determine the effectiveness and fairness of the changes that have been made. Moreover, the total costs of any given Finance Commission, including both central and state costs, are not disclosed to the public. M Govinda Rao has also previously stressed on the need for more transparency in the deliberations on equity and efficiency aspects. The current debate on fiscal transparency in India can be traced back to 1998 after the East Asian financial crisis. India is a signatory to the IMF’s Codes of Good Practices; nevertheless, there are problems with regard to state-level fiscal disclosure. The 16th Finance Commission has to address issues of transparency in tax sharing formulas and therefore, establish a permanent data portal to enhance access. Opening the fiscal policy is important for increasing the trust and stability of the financial system.

What's Hot

Ghost Paradise – A Heart-touching Cinematic Experience

Meesho Faces Big Spotlight as It Allocates ₹480 Crore for AI and Tech Salaries

Why ACL Reconstructions Fail: Dr Ashwani Maichand Elaborates on Key Causes of ACL Repair Failure and How to Avoid Them

Virus Susceptibility in Species: Study Reveals Surprising Findings

Effective Yoga Poses to Naturally Manage Blood Sugar Levels

Health Budgets Of States Fall Below 8%, Missing National Health Policy Targets

Priyanka Chopra’s Stunning Desi Look Steals the Spotlight at Her Brother’s Wedding Festivities

Jana Nayagan: Vijay Wields a Whip in Stunning 2nd Look Poster, Thrilling Fans

Assam’s Jatin Goswami Honored with Padma Bhushan for Sattriya Legacy

Vijay Vikram Singh Urgently Appeals for Respect Amidst Intense Backlash from Rajat Dalal Fans: ‘I Am Not Bigg Boss

Hindon: Incredible Air India Express Flights to Start from March 1 with Low Fares

Indian government approves Singapore Airlines bid to merge Vistara and Air India

Independence Day and Raksha Bandhan Fuel Airbnb Travel Rush

Virus Susceptibility in Species: Study Reveals Surprising Findings

Hindon: Incredible Air India Express Flights to Start from March 1 with Low Fares

Bachchan’s ₹83 Crore Duplex Sale Sparks Unbelievable Investment Growth

Kartik Aaryan’s Fitness Secret: How He Achieved a Stunning Transformation

Browsing: Finance Commission

Finance Commission’s Transparency Issues Demand Urgent Attention

Ghost Paradise – A Heart-touching Cinematic Experience

Meesho Faces Big Spotlight as It Allocates ₹480 Crore for AI and Tech Salaries

Why ACL Reconstructions Fail: Dr Ashwani Maichand Elaborates on Key Causes of ACL Repair Failure and How to Avoid Them

A Bold New Shift in Customer Data Sharing

Our Picks

Ghost Paradise – A Heart-touching Cinematic Experience

Meesho Faces Big Spotlight as It Allocates ₹480 Crore for AI and Tech Salaries

Why ACL Reconstructions Fail: Dr Ashwani Maichand Elaborates on Key Causes of ACL Repair Failure and How to Avoid Them

Most Popular

How to optimise instagram account to increase more followers

Maruti Suzuki Company expanded the SUV lineup with a new mid-size model Victoris.

US House passes bill to ban TikTok

Subscribe to Updates

What's Hot

Browsing: Finance Commission