Finance Commission tweaks tax-sharing formula: Southern states gain, Hindi-belt loses
India's 16th Finance Commission just changed how tax money is split up, and it's good news for southern states like Karnataka, Kerala, Andhra Pradesh, Telangana, and Tamil Nadu.
Thanks to new factors like "contribution to GDP," these states will see their share go up.
Meanwhile, big Hindi-speaking states—Uttar Pradesh, Bihar, Madhya Pradesh, Chhattisgarh, and Rajasthan—will get less.
Southern states get ₹18,330cr more
Southern states are set to receive an extra ₹18,330 crore under the new formula.
For example: Karnataka's share jumps from 3.64% to 4.13%, and Kerala's goes from 1.92% to 2.38%.
On the flip side, the Hindi heartland loses about ₹17,338 crore overall; Madhya Pradesh alone drops from 7.85% to 7.35%.
The government has accepted these changes—so expect more funds flowing south soon!