Measurement of States Taxable Capacities-Ninth Finance Commissions Methodology

Ninth Finance Commission's Methodology Dipankor Coondoo Robin Mukherjee The efforts made by the Ninth Finance Commission, as required by its terms of reference, to develop a methodology for estimating the taxable capacity of states should be welcomed. However, there are a number of problems, many of them technical in nature, with the methodology adopted by the commission and it should therefore be subjected to critical examination.