Finance Commission's Formula: Is It Short-Changing Southern States?

Finance Commission's Formula: Is It Short-Changing Southern States?

Southern states fear the 16th Finance Commission's report will short-change them, arguing current formulas favour population and lower incomes over performance and tax collection. They highlight declining fiscal capacity despite strong socio-economic indicators and advocate for a rebalanced approach to tax revenue sharing, including cesses and surcharges, to foster true cooperative federalism.