The Centre needs to revisit the 'income distance' criterion, which gets a heavy weightage in the computation of tax devolution. Southern states, in turn, need to address their own pain points. It's give some, take some.
The BJP and the Congress went head-to-head Wednesday morning over allegations the centre is withholding funds - specifically devolution of tax revenue - to the Karnataka government.
15th Finance Commission opted for continuity, predictability in deciding tax devolution to states, says NK Singh
Speaking at a webinar organised by the Centre for Policy Research (CPR), Singh said each Finance Commission in the past has somewhat increased the total amount of devolution to states
PTI | March 6, 2021 | Updated 17:42 IST
The 15th Finance Commission Chairman NK Singh
The 15th Finance Commission opted for continuity and predictability and hence retained the share of tax devolution to states at 41 per cent of the total pool, its chairman N K Singh said on Saturday. Speaking at a webinar organised by the Centre for Policy Research (CPR), Singh said each Finance Commission in the past has somewhat increased the total amount of devolution to states, but the 15th Finance Commission weighed all the options considering that the fiscal space of both states and the Centre has shrunk on account of the COVID-19 pandemic.