Finance Commission report: States's share of central taxes
The 16th Finance Commission just shook up how much tax money states get from the Centre.
Kerala, Assam, and Tamil Nadu are set to see their shares go up—Kerala gets an extra ₹6,975 crore, Assam gets ₹1,994 crore more, and Tamil Nadu's share rises by ₹275 crore.
Meanwhile, West Bengal's portion drops by about ₹4,700 crore.
The new formula gives more weight to each state's contribution to India's GDP.
Why this matters
This isn't just about numbers—these changes could impact everything from local development projects to election strategies in these key states.
With major grants also lined up for rural and urban growth (and a big disaster relief fund), the way this money is split will shape what happens on the ground—and even influence upcoming state elections and may have a bearing on who becomes President in 2027.
If you're curious about how government funds actually affect your state or city life, this is one story worth following.