Reforming India’s Fiscal Transfer System : Resolving Vertical and Horizontal Imbalances

Two central problems in a fiscal transfer systemrelate to resolving vertical and horizontal imbalances. In the context of the setting of the 13th Finance Commission, this paper looks at the methodological background of fiscal transfers followed by recent Finance Commissions in India, particularly the Twelfth Finance Commission (TFC). It is noted that in India, there is long - term stability in the share of states after transfers in the combined revenues of the centre and the states. It is argued that this stability depends on linking the share of states in the transfers, particularly tax devolution with the difference in the buoyancies of central and states taxes. In the context of horizontal imbalance, it is argued that some of the recent Finance Commissions have implicitly followed an axiomatic approach to tax devolution and brought in some normative elements in determining grants. In spite of large difference in fiscal capacities, a high degree of equalization has been achieved. It is shown, for example, that in the case of TFC recommended transfers, nearly 88 percent of needed equalization was achieved while devoting 50 percent of transfers to resolving vertical imbalance. Amethodology is also developed to determine weights of vertical and equalizing components of transfers through devolution. In the case of the Twelfth Finance Commission, the horizontal component of tax devolution is strengthened by a scheme of equalizing health and education grants.fiscal transfer system, vertical imbalance, horizontal imbalance, Twelfth Finance Commission

Measuring Accuracy of Projections of Central Taxes by the Finance Commission

This paper looks at the quality of forecasts/assessments made by some of the recent Finance Commissions for the shareable central taxes and own tax revenues of selected states. The Commissions covered under this analysis are Ninth to Twelfth Finance Commissions. It is observed that while direct taxes are underestimated in general, revenues from indirect taxes partially Union excise duties and custom duties have been over estimated. In respect of states, four selected states viz., Andhra Pradesh, Gujarat, Orissa and Assam are examined. While there is similarity between the approaches of Ninth, Tenth and Twelfth Finance Commissions in regard to middle and high income states, the Eleventh Finance Commission required that they raise tax revenues higher than what they were able to achieve.Central Taxes, Own Tax Revenues, Finance Commission

Reforming Indirect Taxes in India : Role of Environmental Taxes

Extensive reforms of Indias indirect taxes at the central and the state levels has prepared the necessary ground for the implementation of a comprehensive goods and services tax (GST). The Empowered Committee of the State Finance Ministers in their First Discussion Paper and the Thirteenth Finance Commission in their recently submitted report have suggested GST models which are quite different in many respects. This paper identifies these differences and argues that within the regime of taxation of goods and services in India environmental tax reform should also be incorporated to make the tax regime play a significant role in managing environment. The environment tax reforms will yield both a fiscal double dividend and an economic double dividend making the Indian economy pursue a path of sustainable development.Taxes, Environment

Assessment of Effectiveness of Buffer Zones in Removing Impurities in Runoff from Areas Treated with Poultry Litter. Part II: Source Areas to Buffer Areas Ratio Effects

Vegetative filter strips (VFS) are known to reduce runoff losses of nutrients. solids. and other materials from land areas treated with fertilizers . Although VFS effectiveness is known to depend partially on the relative lengths of filter and pollutant source areas. there is little experimental evidence available to quantify this dependence. This is particularly the case when VFS are implemented down-slope of pasture areas treated with animal manures such as poultry litter. This study assessed the influences of pollutant source area (treated with poultry litter) and VFS lengths on VFS removal of total Kjeldahl nitrogen (TKN). ammonia nitrogen (NH3 -N ). nitrate nitrogen (N03-N). ortho-phosphorus (P04-P). total phosphorus (TP). total organic carbon (TOC). total suspended solids (TSS). and fecal coliform (FC) fromincoming runoff for a silt loam soil with fescue cover. Litter-treated lengths of 6.1. 12.2. and 18.3 m with corresponding VFS lengths of up to 18.3 m. 12.2 m. and 6.1 m. respectively, were examined. Runoff was produced from simulated rainfall applied at 50 mm/h for 1 h of runoff. Concentrations of the parameters analyzed were unaffected by litter treated length but demonstrated a first-order decrease with increasing VFS length except in the cases of TSS and FC. Mass transport of TKN. NH3-N. P04-P. and TP increased with increasing litter-treated length (due to increased runoff) and decreased (approximately first-order) with increasing VFS length. Effectiveness of the VFS in terms of TKN. NH3-N. P04 -P. and TP removal from runoff ranged from 6.5 to 96.3% depending on the particular parameter. litter-treated length. and VFS length. The data collected during this study can be helpful in developing and testing simulation models of VFS performance and can thus aid in design of VFS for pasture areas treated with poultry litter

Data analysis of continuous gravitational wave: Fourier transform-II

In this paper we obtain the Fourier Transform of a continuous gravitational wave. We have analysed the data set for (i) one year observation time and (ii) arbitrary observation time, for arbitrary location of detector and source taking into account the effects arising due to rotational as well as orbital motion of the earth. As an application of the transform we considered spin down and N-component signal analysis.Comment: Accepted in MNRAS, 14 pages, 4 figure