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The Political Economy of Federalism in India$
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Nirvikar Singh and Govinda Rao

Print publication date: 2006

Print ISBN-13: 9780195686937

Published to Oxford Scholarship Online: October 2012

DOI: 10.1093/acprof:oso/9780195686937.001.0001

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Explicit and Implicit Intergovernmental Transfers

Explicit and Implicit Intergovernmental Transfers

(p.190) 9 Explicit and Implicit Intergovernmental Transfers
The Political Economy of Federalism in India

M. Govinda Rao

Nirvikar Singh

Oxford University Press

This chapter analyses inter-regional transfers in India. It examines the design and implementation of transfers from the Finance Commission, the Planning Commission, and through various central ministries for Central sector and centrally sponsored schemes. It describes the implicit inter-regional resource flows and suggests that such subterranean transfers significantly offset the progressivity of explicit transfers. It also discusses explicit transfers, interstate equity, the institutional mechanism for intergovernmental transfers, and the implicit intergovernmental transfers in India.

Keywords:   inter-regional transfers, India, Finance Commission, Planning Commission, central ministries, intergovernmental transfers, central sector schemes, centrally sponsored schemes, subsidized lending, interstate tax exportation

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