---
title: "Horizontal Devolution Formula Explained | Model Diplomat"
description: "The horizontal devolution formula is used by India's Finance Commission to fairly distribute central tax shares among states based on weighted criteria."
url: "https://modeldiplomat.com/learn/glossary/horizontal-devolution-formula"
---

[New](https://modeldiplomat.com/)

#

Model Diplomat Research Team · Last reviewed June 22, 2026

TL;DR

- The horizontal devolution formula is the criteria-and-weights scheme a Finance Commission uses to distribute the states' share of central taxes among the individual states.
- How does horizontal devolution differ from vertical devolution?
- Why did southern states object to the Fifteenth Finance Commission's formula?
- What were the criteria and weights in the Fifteenth Finance Commission formula?
- Why do states complain about cesses and surcharges in this context?

[Civil Service & Diplomatic Exams](https://modeldiplomat.com/learn/civil-services/glossary)Updated June 22, 2026

Go beyond the definition

## Research Horizontal Devolution Formula like a delegate

Model Diplomat's AI drafts position papers, speeches, and country research with real sources — built for MUN and politics students.

## Research it like a delegate

Research on modeldiplomat.com

## Ask a follow-up about Horizontal Devolution Formula

Open a cited briefing in Model Diplomat search — timelines, positions, and sources you can use in committee or exam answers.

[Start research on Horizontal Devolution Formula](https://modeldiplomat.com/search?q=Explain%20Horizontal%20Devolution%20Formula%20%E2%80%94%20key%20dates%2C%20actors%2C%20positions%2C%20and%20sources)

Example

The Fifteenth Finance Commission, chaired by N.K. Singh, set its 2021–26 horizontal devolution formula in New Delhi giving income distance a 45 percent weight and adding a 12.5 percent demographic-performance criterion to address southern states' objections.

Keep learning

## Go deeper than the definition

[Explore all Civil Service & Diplomatic Exams lessons](https://modeldiplomat.com/learn/civil-services)[Test yourself with a quiz](https://modeldiplomat.com/learn/glossary/quiz/civil-services)

## Take Horizontal Devolution Formula beyond the glossary

Ask the AI research engine built for diplomacy — get briefings, position papers, and speeches with sources you can cite in committee.