The 15th Finance Commission missed its chance to fix imbalances and pre-empt deeper political discontent over federalism
All power in a democracy ultimately belongs to the country’s people. In India, one constitutionally mandated body that is designed to deliver on this promise, in a manner that balances revenue power with expenditure responsibilities, is the Finance Commission (FC). The FC is constituted every five years and its scope is set out each time in a document called the Terms of Reference (ToR). It is received political tradition for the incumbent government to accept the FC’s recommendations once they are tabled.