Central Transfers to the States: 14th FC vs 15th FC period

The average share of central devolution to the States during the 14th FC has been around 41% while during the 15th FC it has been around 39% indicating shrinkage of fiscal autonomy for the States during the post-pandemic period. Thus, even though the 14th FC recommendations changed the landscape of fiscal federalism in India with its landmark recommendations that would have increased state fiscal autonomy, states income were much lower than estimated. This was due to the shrinkage of the divisible pool of taxes in the post-pandemic period despite the optimistic GDP growth estimates made by the 15th FC.

Click/Tap on State to see its five-year trend on this metric