As India stands on the brink of the XVI Finance Commission’s recommendations, the debate on fiscal federalism has re-emerged at the centre of public policy discourse.

A recent report titled “State Finances in Transition: An Analysis of Revenue Receipts and Fiscal Dynamics in India during the XV Finance Commission Period,” published by the Foundation for Responsive Governance and authored by Sharad Pandey and Avani Kapur from the Foundation for Responsive Governance (ResGov), provides an in-depth examination of the receipts side: the sources, structure, and trends in own revenues, tax devolution, grants-in-aid, and borrowings.

India’s fiscal federalism is now at a crossroads—caught between the ideals of fiscal decentralization and the practical realities of centralization.This episode of the podcast discusses the research report by ResGov, aiming to explore whether the constitutional vision of fiscal balance can be reimagined in today’s context.

KEY DISCUSSION POINTS

• India's performance during the XV Finance Commission period, and major trends that emerged across key fiscal indicators
• Realistic ONTR avenues states can explore without undermining the equity or affordability of public services
• Key drivers of actual tax devolution during the XV Finance Commission period, which exceeded the amounts originally recommended
• Measures to be prioritised to strengthen the states’ receipt side of the balance sheet under the 16th Finance Commission, since borrowings continue to constitute a significant share of total state receipts

SPEAKERS:

Avani Kapur, Founder and Director, Foundation for Responsive Governance (ResGov)

Sharad Pandey, Senior Research Consultant, Foundation for Responsive Governance (ResGov)

HOST

Banisha Begum Shaikh, Senior Associate - Research & Projects, CPPR

Tune in for an insightful discussion on revenue receipts and fiscal dynamics in India during the XV Finance Commission period.