Sp issue on 16th Fin Commission-(Wl-2241)-Issues Before the Sixteenth Finance Commission

Since the share of devolution proposed by the Fourteenth and Fifteenth Finance Commissions covered aggregate revenue expenditures of States, their awards are not strictly comparable with the earlier Finance Commission awards. In the absence of plan and non-plan distinction, the constitutional role of the Sixteenth Finance Commission is also to assess the vertical gap and recommend transfer of resources to the States for the financing of entire revenue expenditure. To avoid a situation of unfunded mandate at the State level, it is critical that the Sixteenth Finance Commission maintains the stability of the flow of untied fiscal resources to the States and ensure progressive distribution of transfers.