Highlighting the concerns related to the Terms of Reference (TOR) of the Fifteenth Finance Commission discuss how the commission has balanced conflicting interests.

It was presented & reports - Interim report (2020-21) - Final Report (2021-2026) Concerns related to Terms of Reference: 1) Criteria for devolution - demographic change refurs to Total Fertility Ratio divide between northern & southern states. 2) Decreased devolution of funds from union to state to 41%. Due to addition of Jammu and Kashmir. 3) Usurped the virtual from forest to forest and ecology ⟹ bias towards states with population pressure and higher forest cover. 4) Devolution of grants to local bodies made conditional on performance audits, mechanisms and

foundation of state finance commission. 5) Belongs in formation of 16th Finance Commission. Balancing conflicting interests: 1) North-South divide - The southern states feel distant due to non-appreciation & advancement of decreasing TFR ⟹ Northern states get greater devolution due to 'higher population'. ⟹ FC too tied to resolve this. 2) Differences in North-east - Greater forest & ecology cover but income distance normal and high ⟹ Finance commission was tied to ensure fair and transparent functioning. 3) Parity of resources to local bodies - but revised based devolution well enhance accountability and sustainability.