Explicit and Implicit Intergovernmental Transfers

M. Govinda Rao and Nirvikar Singh

in The Political Economy of Federalism in India

Published in print November 2006 | ISBN: 9780195686937
Published online October 2012 | e-ISBN: 9780199080571 | DOI:

Series: Oxford India Paperbacks

Explicit and Implicit Intergovernmental Transfers

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This chapter analyses inter-regional transfers in India. It examines the design and implementation of transfers from the Finance Commission, the Planning Commission, and through various central ministries for Central sector and centrally sponsored schemes. It describes the implicit inter-regional resource flows and suggests that such subterranean transfers significantly offset the progressivity of explicit transfers. It also discusses explicit transfers, interstate equity, the institutional mechanism for intergovernmental transfers, and the implicit intergovernmental transfers in India.

Keywords: inter-regional transfers; India; Finance Commission; Planning Commission; central ministries; intergovernmental transfers; central sector schemes; centrally sponsored schemes; subsidized lending; interstate tax exportation

Chapter.  11905 words.  Illustrated.

Subjects: Economic Development and Growth

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