Question

what are the different modes of transfer of funds from the centre to the states? discuss

Answer 1

he Center-State finances is a confusing topic. Most of the states depend on the center for the large chunk of their revenue. There are different channels through which the center transfer funds to states. With many organizations like Finance Commission(FC), else while Planning Commission(PC) and the present NITI Aayog  involved, people are only confused. Besides there are many formulae like the Gadgil-Mukherjee formula and Finance Commission formula. No, not over; we should also know about Special Category States!