Examining the Formula Used by the Finance Commission to Determine State Shares

A week ago, Tamil Nadu Finance Minister Thangam Thennarasu accused the Union government of showing a “step-motherly attitude” towards the State over devolution of funds. Around at the same time, at a media conclave, Thiruvananthapuram Lok Sabha MP Shashi Tharoor spoke about the potential danger of political disenfranchisement in the south when the delimitation freeze ends in 2026. These statements have brought the tussle over the distribution of Central taxes as well as the delimitation of constituencies to the fore. 

Here we discuss whether the south is being punished for its success.