Experts Discuss Challenges and Recommendations on India's 16th Finance Commission Report

Experts at recent conferences critiqued India's 16th Finance Commission report, emphasizing the need for renewed Centre-State dialogue to strengthen fiscal federalism. Former RBI Governors D. Subba Rao and C. Rangarajan highlighted concerns over States' limited fiscal autonomy, the unchecked growth of cesses and surcharges, and the discontinuation of revenue deficit grants. Former Planning Commission Deputy Chairman Montek Singh Ahluwalia warned against combative federalism and called for revisiting resource distribution and governance structures to better align with India's evolving economic landscape.