Why India’s states are antsy about money
How much money gets spent by the Centre and each state just got decided. Here’s how and why it matters to you
If the less-than-expected tax buoyancy continues, states will feel more anxious, especially with GST having the unintended effect of creating a new Centre-state fault line
How financial resources are distributed between the Centre and states—or, fiscal federalism—is a concept as old as independent India. But what’s emerged as critical factor in the last three years is uncertainty from new revenue sources, which has ratcheted up the tension between the Centre and states.