Articles by T Ravi Kumar

Disparate regional growth in India has seen economically faster growing "minority" cultural groups demanding a change in the horizontal devolution formula instituted in the federal system. This has created the possibility of friction between majority and minority cultural groups in the union of states. A new multicultural approach towards federalism is therefore necessitated which takes cognisance of this fact.

The changes introduced by the Twelfth Finance Commission in the horizontal devolution formula determining the inter se tax shares of individual states have effectively reduced its progressivity at a time when regional disparities are worsening. Equity considerations necessitate greater utilisation of criteria that reflect the variations in the levels of regional development, if the poorer states are to overcome differentials in revenue capacity by obtaining a larger share in Finance Commission awards.

The issues involved in the turmoil in higher education - sustained autonomy, maintenance of academic standards, greater availability and accessibility to deprived and weak sections of society - are fundamental to the continued health of the higher education system of the country. The declining importance being assigned to this sector, in stark contrast to developed countries, has created disparities that are increasing over time. The ongoing process of dismantling the higher education system in the country has to be reversed if the gap between India and the developed countries is to be bridged.

This paper examines the progressivity of the formulae determining the horizontal sharing of taxes in the last four Finance Commission awards and the criteria constituting the formulae in terms of shares accruing to different income categories. The paper also attempts to determine changes in progressivity brought about by the different Finance Commissions.