Fiscal federalism

Concerns over distribution must not be allowed to fester

In what is becoming a regular ritual during the Budget season, the governments of some states in South India have objected to their share of taxes and thus to the Union government’s implementation of fiscal federalism in general. Their complaint is not new, but has taken on additional political implications in recent years. Naturally, non-National Democratic Alliance-ruled states are more likely to raise this complaint. It can be recalled that Gujarat also raised concerns about fiscal federalism during the years in which the United Progressive Alliance was in power in New Delhi. But there are concerns beyond pure politics that