As 16th Finance Commission visits Maharashtra, state also suggested introducing 2 new criteria to decide fund devolution—states' work on sustainability & contribution to GDP.
Presently, India shares 42% of federal taxes with states. Next Finance Commission will submit its report by October 2025 and its recommendations will be implemented from fiscal yr 2026-27.
The allocation ratio formula that the Finance Commission devised is extremely skewed. Nearly 75 per cent of the weightage, in the ultimate analysis, goes toward population.
The decision to opt out of the big RCEP trade deal may eventually have been out of lack of choice, but it is silly to pretend it is a sign of bold leadership.
If this argument of south-vs-north is followed through, a direct corollary would be to also oppose money flows from Bengaluru to Bidar or from Whitefield to south Bengaluru.
The Modi Govt has instructed the Finance Commission to use 2011 census figures instead of the 1971 figures, to apportion revenue from taxation between the states.
After dominating India’s crude imports since 2023, Russian supplies slowed amid US sanctions, but a 30-day ‘waiver’ amid West Asia tensions could now push flows back towards 2 mbpd.
Trump has ushered in the age of humiliation. His method is to push around America’s friends rudely and publicly. He knows none of them can afford to fight back.
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