State Finance Commissions (SFCs) occupy a constitutionally mandated but persistently underpowered position in India’s system of fiscal federalism. Envisaged under the 73rd and 74th Constitutional Amendments as the cornerstone of fiscal decentralisation, SFCs are expected to recommend principles for the sharing of state revenues with rural and urban local governments and to strengthen their financial capacity. Yet, more than three decades later, the promise of SFCs remains only partially realised.

Across states, SFCs face a common set of challenges: delayed constitution, limited technical and analytical capacity, weak data systems, loss of institutional memory between successive commissions, and poor implementation or monitoring of recommendations. At the same time, the responsibilities of local governments have expanded rapidly, driven by urbanisation, growing service delivery expectations, and increasing reliance on tied grants and centrally sponsored schemes. This mismatch between mandates and means has placed local governments under sustained fiscal stress.

The National Conference on State Finance Commissions, held at Pune International Centre, on 17th January 2026, provides a platform to take stock of these challenges and to reflect on the evolving role of SFCs in India’s federal architecture. Drawing on the experiences of SFC chairpersons, practitioners, researchers, and policymakers. The discussion was broadly based on the themes mentioned below:

• Strengthening State Finance Commissions to advance cooperative federalism, fiscal decentralisation, and accountable local governance.
• Improving devolution outcomes through better institutional design, continuity, and evidence-based decision-making.
• Addressing emerging fiscal pressures from urbanisation, service delivery demands, and data constraints at the local level.

By fostering a peer-based dialogue and encouraging the exchange of practices across states, the conference sought to move beyond diagnosis toward actionable pathways for reform. The broader objective is to reimagine SFCs not merely as periodic advisory bodies, but as integral institutions supporting cooperative federalism, accountable decentralisation, and sustainable local governance.

Attendees for the Conference

State Finance Commission (SFC) Participants

R. K. Mehta – Chairperson, Haryana 7th State Finance Commission; Mr. K. Allaudin, IAS (Retd.) – Chairperson, Tamil Nadu 7th State Finance Commission; Dr. K. N. Harilal – Chairperson, Kerala 7th State Finance Commission; Shri Rajaiah Siricilla – Hon’ble Chairperson, Telangana State Finance Commission; Sh. Kulwant Khullar – Member, Haryana 7th State Finance Commission; Mr. Vivek – Officer on Special Duty (OSD), Tamil Nadu 7th State Finance Commission; Shri Sankepally Sudheer Reddy – Hon’ble Member, Telangana State Finance Commission; Shri Praneeth Kumar Kaparthi – Senior Lead, Telangana State Finance Commission.

Pune International Centre (PIC) Participants

Dr. Vijay Kelkar – Vice President, Pune International Centre (PIC) and Chairman, Thirteenth Finance Commission of India; Dr. Nitin Kareer, IAS (Retd.) – Chairperson, Maharashtra 6th State Finance Commission and Trustee, Pune International Centre (PIC); Dr. Abhay Pethe – Senior Fellow, Pune International Centre (PIC); Dr. Vishal Gaikwad – Research Fellow, PIC; Ms. Amruuta Pawar – Program Manager, Pune International Centre (PIC); Ms. Nidhi Tambe – Research Assistant, Pune International Centre (PIC); Mr. Anay Kulkarni – Research Assistant, Pune International Centre (PIC).

Janaagraha Participants

Mr. Srikanth Viswanathan – Chief Executive Officer, Janaagraha, overseeing organizational strategy and operations since 2016; Mr. Prabhat Kumar – Director, Public Finance Management, Janaagraha, leading initiatives on municipal finance and fiscal decentralization; Ms. Manisha Marulasiddappa – Senior Associate, Public Finance Management, Janaagraha, working on strengthening urban finance systems; Mr. S. M. Vijayanand, IAS (Retd.) – Advisory Board Member, Janaagraha and Former Chief Secretary, Government of Kerala.

Other Invitees / Experts

Sunil Dhade – Former Civil Servant and Principal Accountant General (Audit) for Maharashtra, Indian Audit and Accounts Service; Ms. Susan Thomas – Senior Research Fellow and Co-founder, XKDR Forum; Mr. Anirudh Burman – Senior Research Fellow, XKDR Forum; Mr. Manish K. Singh – Visiting Research Fellow, XKDR Forum and Assistant Professor, IIT Roorkee; Dr. V. N. Alok – Professor, Indian Institute of Public Administration and Member, Delhi Finance Commission; Dr. Ravikant Joshi – Urban Finance and Management Specialist; Mr. Pashim Tewari – Technical Director, All India Institute of Local Self-Government (AIILSG); Mr. Pramit Bhattacharya – Data for India; Mrs. Mala Lalvani – Mumbai School of Economics and Public Policy; Mr. Hari K. S. – Gokhale Institute of Politics and Economics; Mr. Devashish Deshpande – Principal Consultant, Strategic Public Finance, CEGIS Foundation; Mr. Anindya Panda – Senior Program Manager, Public Finance Team, CEGIS Foundation; Mr. Sharad Pandey – Senior Research Associate, ResGov; Mr. Manish Gupta – Associate Professor, National Institute of Public Finance and Policy; Mr. Omkar Mukund Kane – Centre for Water and Sanitation (CWAS); Ms. Jayashree Dilip Bhingardeve – Centre for Water and Sanitation (CWAS); Ms. Reshma Sambare – Jhep Foundation.