Report of the Fifth Finance Commission, 1969

Chapter 2: The Problems-Our Approach

The question of assessment of the forecasts of revenue receipts and expenditure of the States is considered in detail in Chapter 6 of the Report, which deals with grants under Article 275. We propose to indicate here our broad approach to the problem. In estimating the total deficit of each State we have taken into account their revenue resources on the basis of 1968-69 levels of taxation and their requirements for expenditure on revenue account, including committed Plan expenditure and interest charges.