Finance Commission Proposes, the Union Disposes

The restructuring of central plan assistance to states proposed in the Union Budget for 2015-16 will result in neutralising the benefi t of an increase in unconditional tax devolution proposed by the Fourteenth Finance Commission, by imposing higher burden on states in funding centrallysponsored schemes. This issue can be addressed through a reduction in the number of CSSs, grouping them into core and non-core categories and giving states the option to select schemes based on their priorities within the core category.