Abstract
Constitutionally, there is a wide disparity between assignment of revenue powers and expenditure responsibilities to the local governments and therefore, IGFT has to be designed for local governments with an objective to enhance their fiscal capacity. The chapter defines and presents measures of fiscal attributes, viz. fiscal needs, fiscal capacity, fiscal effort and disability factor which have been considered for an optimal design of IGFT. Examination of state finance commissions’ reports, in India, reveals that the States have undertaken such criterion reflecting these attributes to transfer resources to local governments from states’ kitty.
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Notes
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The initiative launched under the aegis of NITI Aayog to quickly and effectively transforming selected districts which are backward.
References
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Alok, V.N. (2021). State-Local Intergovernmental Fiscal Transfer (IGFT) in India: Identification of Indicators. In: Fiscal Decentralization in India. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-16-2203-8_2
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DOI: https://doi.org/10.1007/978-981-16-2203-8_2
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