Seeking a greater share of resources for states, Badal said that even on state subjects like agriculture and education, the Centre had acquired authority not only to legislate but even to control all the funds.
Badal, whose party Shiromani Akali Dal is an ally of the BJP, stressed that the country needs to focus on providing basic amenities like drinking water, toilets, quality education etc "instead of diverting precious resources on capital intensive projects like bullet trains."
"Up till now, there has been a confusion between a strong India and a strong Centre. We stand for a strong and genuinely federal India," Badal said at a conclave of Chief Ministers called by Prime Minister Narendra Modi to replace the Planning Commission.
The Punjab Chief Minister said the formula for distribution of resources between Centre and states needs to be "drastically reversed".
The distribution among states should also be based on a transparent formula in an untied manner instead of through political discretion under which larger states walk away with all the funds, he said.
Badal emphasised on the need for a formula which gives weightage to share of the scheduled castes population in a state, locational disadvantages such as live international border and contribution to National Food Security etc.