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Synopsis This book deals with the processes involved in transfer of finances from the Union to the States through non-statutory channels. These transfers are essentially in the nature of Central assistance for State Plans. With the increasing magnitude of such transfers, as compared to transfers through statutory channels on the recommendations of the Finance Commissions, this subject has not only gained in importance but has also become controversial. This book gives a historical overview, of the process, culminating in the Gadgil formula, which imparted to it both objectivity and transparency. With the expertise and experience that the authors have in this subject, they provide an insight into the process by which the Gadgil formula was initially evolved and subsequently modified. The logic, on the basis of which certain criteria were selected and weights were assigned to them, is critically examined and the working of the formula in practice is evaluated. A brief biographical sketch of Prof. D.R. Gadgil is also given, of whose work as Dy. Chairman, Planning Commission, the formula is a monument. The book will serve as an invaluable source to those readers who are researching the processes connected with central assistance for state plans.