Context: According to Bibek Debroy, normative recommendations of Finance commissions (FC) remains on paper. Types of recommendations made by the Finance Commission:
- Vertical devolution-Vertical devolution which is done between Centre and State.
- Horizontal distribution– Distribution made between states, on the basis of a formula varying State-to-State.
- Grant-in-aid -Such sums as Parliament may determine for states to be in need of assistance, and different sums may be fixed for different states.
- Case disposal- It is expected that about 14,825 courts can dispose of 225 lakh pending as well as freshly filed cases of a minor nature within a year.
- State Litigation Policy-There was also a “condition” about state governments formulating a “State Litigation Policy” which will again leave the courts overburdened.
- Horizontal Distribution- For equitable horizontal distribution, the measurement of cost disabilities is important. And the data needed for doing so is not available and the FC made recommendations without proper calculations.
- Technical in approach- The Commission is supposed to be technical in its approach and logical in its procedure.
- Subject Experts- Recommendations provided to the President require members who are experts in the subject matters related to the Commission.
- Rule out irregularities– Actions must, therefore, be taken in order to rule out the irregularities taking place within and by the Commission.