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A Tweak To Make Fincom Recommendation Fairer

The New Indian Express Coimbatore

|

August 28, 2025

Finance commission recommendations are, technically, a zero-sum game, where a tweak in the criteria cannot be carried out to benefit all the states—a gain for some states is a loss for others.

- SRAJA SETHU DURAI

So, finance commissions always have a very tight rope to walk.

Until the 7th Finance Commission (FC), only two criteria for devolution were used—population and state contribution towards income tax collection, with 80-90 percent, and 10-20 percent weights, respectively. The 8th FC breaks this tradition and introduces multiple equity criteria, with per capita income distance getting more weight, and remaining a dominant criterion for the past eight commissions. Population and income distance constitute nearly 70 percent of the weights, and most of the remaining 30 percent is distributed across fixed geographic criteria like area and forest cover, with little weight assigned to efficiency.

We must wait to see whether the 16th FC paves a new direction by drastically changing the criteria by giving more weight to efficiency parameters, or follows the same path as their predecessors by slightly modifying the weightage, or reintroduces some of the past criteria so that there is no drastic change in inter se shares.

The New Indian Express Coimbatore からのその他のストーリー

The New Indian Express Coimbatore

The New Indian Express Coimbatore

Bhagwat calls for freeing minds from influence of Macaulay edu system

RSS chief Mohan Bhagwat, speaking on Sunday in Mumbai at the launch event of the volume Arya Yug, highlighted the significance of the Arya era and asserted that Indians (Aryans) had historically travelled across the world, maintaining good communication channels.

time to read

1 mins

October 20, 2025

The New Indian Express Coimbatore

DIWALI CLEANING OF YOUR PORTFOLIO

LEANING an investment portfolio refers to reviewing, reorganis-ing, and optimising investments to align with your financial goals, risk tolerance, and current market conditions.

time to read

2 mins

October 20, 2025

The New Indian Express Coimbatore

SIT formed to hide ‘Sarma’s ties’ with Zubeen death accused, alleges Gogoi

Month after singer’s death, tributes continue

time to read

1 min

October 20, 2025

The New Indian Express Coimbatore

Zomato parent co Eternal gets ₹128 cr GST demand

ETERNAL Limited, the company formerly known as Zomato Limited, disclosed in a regulatory filing on Saturday that it has received a significant goods and services tax (GST) demand order totalling about ₹128.35 crore from tax authorities in Uttar Pradesh.

time to read

1 min

October 20, 2025

The New Indian Express Coimbatore

The New Indian Express Coimbatore

Op Sindoor on till objectives achieved, says Army Chief

ARMY Chief General Upendra Dwivedi has announced that the ongoing military action, dubbed ‘Operation Sindoor 1.0,’ has not ceased, although the firing has paused temporarily.

time to read

1 mins

October 20, 2025

The New Indian Express Coimbatore

The New Indian Express Coimbatore

No festival celebrations this year, TVK tells cadre

TAMILAGA Vettri Kazhagam (TVK) president and actor Vijay has urged party members to refrain from celebrating Deepavali this year as a mark of respect for the 41 people who lost their lives in the stampede during the recent political rally in Karur.

time to read

1 min

October 20, 2025

The New Indian Express Coimbatore

The New Indian Express Coimbatore

WHY YOU NEED TO BUILD A WAR CHEST NOW

HERE are warning signs all around. Despite trade wars and geopolitical tensions, the relative calm in asset prices is disturbing. Equity assets and gold prices do not rally or fall in tandem. The dramatic surge in gold prices over the past year indicates a risk in financial markets. It is not just gold.

time to read

2 mins

October 20, 2025

The New Indian Express Coimbatore

The New Indian Express Coimbatore

Prasar Bharati to monetise TV, radio archives

Policy encourages use of new-age tools

time to read

1 mins

October 20, 2025

The New Indian Express Coimbatore

Changes in employees’ PF rules explained

Rationale behind keeping 25% of accumulated sum locked is to ensure a retirement corpus, says labour ministry

time to read

2 mins

October 20, 2025

The New Indian Express Coimbatore

Poll bug bites women with top degrees

Denied ticket, aspirant tears clothes, breaks down

time to read

2 mins

October 20, 2025

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