The state-versus-centre battle for resources, in six charts
In a historic economic contraction, state governments in India have been forced to pursue austerity. To prevent a repeat of such fiscal disasters, we may have to look beyond the 15th finance commission recommendations.
As India’s economic momentum has slowed over the past couple of years, and public resources have shrunk in tandem, the battle for scarce public funds has only intensified. The central government and state governments have been at loggerheads on a range of issues: the increased use of cesses by the centre, the compensation for shortfall in GST (goods and services tax) revenues, and the extraordinary demands on the 15th finance commission to carve out funds for central subjects such as defence and internal security.