Do States Still Pay the Price For Performance?
Bibliographic Data
| ID | 22410372 |
|---|---|
| Authors | K R Shanmugam (0000-0002-4497-3475, corresponding author) |
| Year | 2026 |
| Volume | 61 |
| Issue | 19 |
| Publication date | 2026-05-25 |
| Open Access | No |
| Type | ARTICLE |
| Venue | Economic and political weekly/Economic & political weekly (JOURNAL) |
| Journal identifiers | ISSN: 0012-9976 • E-ISSN: 2349-8846 |
| Publisher | Sameeksha Trust (PUBLISHER) |
| DOI | 10.71279/epw.v61i19.49459 |
| OpenAlex | W7167493748 |
| Language | EN |
As the devolution shares of better-performing states declined sharply over time, there were expectation of a decisive shift toward efficiency-oriented criteria to strengthen fiscal federalism and enhance state autonomy. However, the Sixteenth Finance Commission largely followed the approach of its predecessor, introducing only incremental changes in the distribution formula. Although it signalled a conceptual shift by acknowledging states’ contribution to GDP, the adoption of a square root transformation substantially diluted the practical impact of this recognition.
Commission · Devolution (biology) · Distribution (mathematics) · Federalism · fiscal federalism · State (computer science) · Fiscal Policies and Political Economy · German Economic Analysis & Policies · Local Government Finance and Decentralization
| Highly cited | No |
|---|