
Recent changes to India's rural job guarantee scheme have reignited disputes between the Union government and states over financial resource sharing. States contend that their share of centrally collected taxes has not kept pace with revenue growth, while they bear significant social and development costs. They also express concern over reduced autonomy due to co-financing requirements for centrally sponsored schemes. The 15th Finance Commission mandates a 41% share for states, but their actual share remains around 33%, fueling grievances, particularly among southern states who feel penalized despite higher tax contributions.
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