The State Finance Commission, although a technical and quasijudicial constitutional entity like the Union Finance Commission, has to help local governments plan for economic development and deliver social justice and public services at the local level. This article evaluates the history of the performance of SFCs in general and shows that they have missed a great opportunity to contribute to the process of building a more inclusive, participatory and environmentfriendly fiscal federalism via promoting decentralised governance in the country. It argues that the blame is to be collectively shared and shouldered by the union, state and local governments.