All Things Policy Lessons in Public Finance
Aug 28, 2025
Explore the fascinating journey through India's public finance, highlighting disparities between southern and northern states. Delve into historical context and the effects of subnationalism on regional identities. Discover the impact of population policies on political representation and fiscal transfers. Unravel the evolution of India's fiscal framework and the importance of accountability in governance. Learn about the policy pipeline's critical stages and the role of competition and bankruptcy laws in boosting economic activities.
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Subnationalism Shaped Southern Success
- Neelakanta argues southern states' early subnationalist movements created shared identities that prioritized education and health.
- These identities, not just policy mimicry, underpin better social outcomes in the peninsular states.
Delimitation Freeze Creates Representation Risk
- The 1976 constitutional freeze on delimitation froze seat allocation to avoid penalizing population control success.
- That freeze creates a future representational dilemma as northern TFRs remain high until at least 2026.
Cesses Shrink The Divisible Pool
- The Centre has increased cesses and surcharges which bypass the divisible pool and reduce funds going to states.
- This weakens finance commission recommendations and keeps vertical devolution lower than intended.
