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The Economic Times

Opinion / The Economic Times

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16th Finance Commission ends revenue deficit grants, flags fiscal discipline reset

The 16th Finance Commission has ended revenue deficit grants for states. This move aims to fix fiscal problems and encourage states to manage their finances better. Previously, states relied on central support, weakening their incentive for reforms. This change signals a move towards greater fiscal responsibility. The commission's decision aligns with global practices to manage government debt effectively.

24 Feb 2026 11:56 pm