
376 | Chapter 13
CASE STUDY
Finance Commission is the constitutional structure which divides the finances of the
country between the Centre and the states. The Finance Commission’s most telling
role is to come up with the ratio in which the tax money that the central government
raises gets divided among the states. A state’s population is a significant factor in
determining how tax revenue is distributed. Up to the 13th Finance Commission,
the 1971 Census data was used exclusively, which was the last census before
aggressive family planning initiatives were implemented. But then the 14th Finance
Commission gave a weightage of 10% for Census 201 ...