India is a union of states, it’s time to act like one
India needs to move away from centralization-decentralization thinking, and embrace genuine fiscal federalism by permanently creating a fiscal power centre in the states
The possibility of the 15th Finance Commission (FC) using the 2011 census for revenue allocation has the political class and policy experts riled. The reason is simple; since the 1971 census (used by the 13th and 14th FCs), there has been a significant demographic divergence. Using 2011 census data will give states with the greatest increase in population an advantage in their share of revenue, relative to prior revenue allocations. And political decisions are already tilted in favour of the demographically rich because of the voting system.
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