Fiscal Federalism of India: Unveiling Patterns in North-South Financial Dynamics

India’s existing tax-sharing system under fiscal federalism has been crucial in fostering equity among states, ensuring that no region is overlooked. However, as the nation sets its sights on the Viksit Bharat @2047 vision, this system needs to adapt not only to maintain fairness but also to encourage efficiency, innovation, and results-focused governance. A revamped strategy that balances redistribution with rewards for fiscal responsibility is necessary to strengthen the cooperative nature of Indian federalism and promote comprehensive national advancement.