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Finance Commission in India

Finance Commission in India: Establishment, Objectives, and Significance

Introduction In a federal system like India, the distribution of financial resources between the Union government and the states is one of the most important aspects of governance. Both levels of government have constitutionally assigned responsibilities for expenditure and revenue generation, but their capacities often differ. To ensure fairness, balance, and efficiency in fiscal federalism,…

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tax expenditure and revenue

Tax Expenditure (Revenue Foregone) and Its Advantages

Introduction Taxation is the backbone of government finance, providing the resources needed to fund public goods, welfare programs, infrastructure, and national defense. However, taxation is not merely about raising revenue; it is also a powerful instrument for influencing economic and social behavior. Governments often design their tax systems in such a way that certain groups,…

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