Reshaping Fiscal Federalism: The Constitutional Evolution of Taxing Powers and its Implications for Economic Governance

Fiscal federalism is the point where constitutional design and economic management meet. It determines how the different parts of the government spend, move, and shift money. Since India became independent, the constitutional basis for taxing powers has evolved a lot. The original constitution made it clear that federal and state governments had different powers when it came to money. Over the years, constitutional amendments, judicial rulings, and changes to institutions have changed this equilibrium. GST was meant to make tax collection easier and establish a national market. This has raised questions about cooperative federalism, state fiscal sovereignty, and the GST Council's competence to make decisions. This book gives a full look at how India's constitution has changed over time and how those changes have affected fiscal federalism and economic governance. Issues of overlapping authorities, state reliance on Union disbursements and remuneration, and the challenge of reconciling autonomy with efficiency are thoroughly examined. Comparing and contrasting federal systems in nations like Germany, Canada, and the US may help us better grasp the balance between tax devolution and centralization in federations. The report contends that India's fiscal changes, while beneficial for market integration, have engendered significant issues with government balance, accountability, and long-term sustainability.