I had written a piece earlier on importance of GST’s success and the institutional excellence of economic entities in Bharat which has flourished in the last few decades. The feedback to the piece was overwhelmingly positive and many people felt that more such institutional features must be highlighted that have had a positive influence on Bharat’s story. This led me to contemplate further on this subject. In the pursuit of Viksit Bharat, there have been significant initiatives which have bolstered our institutional capacity and the knowledge frontier in this regard. The secret sauce to their success lies in its customisation to Bharat’s socio-cultural fabric.

The Finance Commission of India (FCI) was established in 1950 under Article 280 of the Indian Constitution. It’s a constitutional body that is catered particularly to represent and also assimilate the diverse polity in Bharat, including balancing the Center-state relations for national unity and development along with federalism and diversity. Its mandate covers mainly fiscal transfers between the union and states with focus on tax devolution, grants-in-aid, augmenting state finances along with looking at fiscal positions of states and performance linked grants. Not only does it play an institutional balance........

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