26 Aug 2025|Jaipur | Google Meet Platform
“India’s Fiscal Federalism at Crossroads”
The webinar on India’s Fiscal Federalism at Crossroads aimed to make a deeper understanding of Union Finance Commissions in the equalization of fiscal capacity across all government tiers. The webinar provided valuable insights into the dynamics of India’s fiscal federal system. It lays stress on how to enhance the state’s share of net taxes. Webinar also emphasize that the principles of vertical and horizontal devolution must be relooked to ensure equitable distribution of taxes among the states.
The event begins with the welcome of the speaker (Dr. Nirmal Roy V P) by Professor (Dr.) Rahul Tripathi (Director, Amity School of Liberal Arts), followed by the brief introduction of the guest speaker by the moderator of the event (Dr. Rajeev Sharma). Dr. Roy begins by introducing the importance of the fiscal federalism in India. The following key takeaways may be noted:
· Significant increase in the amount of vertical devolution has been accompanied by an increased reliance on Centrally Sponsored Schemes and conditional grants.
· Several key indirect taxes of the states and local bodies were subsumed into the GST along with central taxes.
· GST has become an important part of India’s federal finances.
· Limitations and policy implications of fiscal imbalances were also addressed.
The address was followed by an interactive question-answer session where 5 to 6 questions were asked by the faculties, students, and research scholars. The session ended with a vote of thanks by Dr. Rajeev Sharma.
As an outcome, participants gained a deeper understanding of the division of financial powers and responsibilities between the central government and state governments in India. Participants benefitted in terms of understanding the significance of fiscal federalism in many dimensions- addressing diversity and disparities (regional imbalances), promotes cooperation and consultation between states, enabling decentralized governance and undertaking economic reforms.