This relates to the second feature: the greater centralisation and politically partisan approach to state governments that is getting more extreme by the day. The Narendra Modi government’s miserly — bordering on exploitative — attitude as well as its overtly partisan approach towards state governments has come out clearly in its fiscal policy. Tax revenues are constitutionally required to be shared with state governments according to a ratio and pattern determined by successive Finance Commissions. So states’ revenues are being curtailed by such Central policies without any compensation. And now, this year’s budget reveals that when anticipated tax revenues are not received, the default choice of the Central government would be to cut Central transfers to states.

Source: The Telegraph February 02, 2026 02:42 UTC