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Federal Fiscal Transfers on Health: Implications of Fourteenth Finance Commission Recommendations at Subnational Level

Das, Nimai (2016): Federal Fiscal Transfers on Health: Implications of Fourteenth Finance Commission Recommendations at Subnational Level.

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Abstract

This article is based on a study of Public Expenditure Review of Health Spending in Selected States of India as part of research project Strengthening Ecosystem for Sustainable and Inclusive Health Financing in India (SESSIHFI). It is observed that the growth of tied fund to health in real term is much lower than the untied one during 14th FC period irrespective of category of states as EAG and Non-EAG. In search of the root of such shrinkage in tied component, it observed that there is a negative growth of central tied transfer to health between 13th to 14th FCs in both EAG and Non-EAG states. A very comprehensive level of analysis using Demand for Grant of several state-budgets since 2010-11 to till date shows that while the growth of tied fund directly devoted to communicable diseases is affirmative (excepting Chhattisgarh), a serous negative growth of expenditure on non-communicable diseases is observed for most of the EAG states and a few Non-EAG states during 14th FC period.

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