Fiscal Federalism Under Strain Amid Centre-State Revenue Tensions
· India · Deccan Herald, deccanherald
Fiscal federalism faces mounting pressure in India as debates intensify over resource allocation and tax devolution between the central government and states. State administrations have raised concerns regarding the distribution formulas managed by the Finance Commission and the collection of cesses and surcharges. Economic analysts note that these financial frictions impact state-level capital expenditure and welfare spending. The central government has defended its fiscal management framework while maintaining ongoing dialogue with state finance ministers.
Why it matters
Tensions in fiscal federalism directly affect state budgets, funding for public infrastructure projects, and the delivery of essential services across Indian states.
Read the original report — Deccan Herald
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