The politics of public money
How India raises and shares public revenue, and what fiscal rules leave states able to do.
18 Dec 2025
India’s new cess puts the use of earmarked revenue under scrutiny
A capacity-based levy can make revenue easier to assess. Its public-finance case also depends on how spending is authorised and what the levy means for tax sharing.
5 Feb 2026
The Finance Commission’s GDP criterion rewards scale with a deliberate limit
The states’ 41 per cent share stays in place. The new GDP component changes how money is shared among states, with a square-root rule that tempers the reward for size.
26 Mar 2026
Maharashtra’s fiscal room is smaller after salaries, pensions and interest
A fiscal deficit of 2.8 per cent of state output tells only part of the story. The flexibility to fund new priorities depends on what is already committed and how receipts perform.
6 Apr 2026
Cheap central loans make state capital spending easier to fund and harder to assess
Fifty-year interest-free loans can make productive state investments affordable. The public return depends on additional work, asset use and maintenance after the funds arrive.
6 Aug 2026
India’s flood advances buy speed. Recovery requires a separate account.
An advance from the Centre’s share of disaster funds can prevent delays in immediate relief. The amounts needed for mitigation and rebuilding have to be assessed separately.
9 Nov 2026
An early tax transfer can matter even when states receive the same amount
The Centre advanced the regular ₹1.09 lakh crore devolution instalment by five days. The effect depends on which states faced a temporary cash constraint and what payments they could bring forward.