This collection of papers addresses the issues of fiscal federalism, centre-state relations, fiscal decentralization, unconventional methods of resource mobilization for filling the huge gap in infrastructure financing and strategies for achieving fiscal sustainability at the national and sub-national level in the globalized setting. Though a number of articles are in the context of Kerala, the overarching fiscal problems of sub-national governments are common to all. It contains detailed and in-depth analysis by eminent scholars and seasoned economic administrators, based on empirical and theoretical studies.Six decades of federal fiscal arrangement in India has resulted in centralization of fiscal powers, increase in regional imbalances and increased vertical and horizontal imbalances. Central and state government finances came under great stress during the last decade, and the situation continued in the early years of the current decade on account of a variety of reasons. The five-year period since 2003-04, however, saw significant fiscal correction and consolidation at the central and state levels. The still-unfolding implications of the global financial and economic crisis on the union and state finances are going to be severe. Both the centre and the states may take years before the targets of deficits set for March 2009 under fiscal responsibility legislations could be realized.