Mr Sardesai amplifying Telangana Deputy CM Bhatti Vikramarka’s line that “double engine” northern states get more only because they are BJP-ruled is petty politics dressed up as federalism.
Tax devolution is not a party favour. It is decided by the Finance Commission, a constitutional body, on published criteria: income distance (the biggest weight), 2011 population, area, forest cover and demographic performance. Poorer and more populous states get a larger share because that is how fiscal equalisation works. The same logic was used by every Finance Commission under Congress governments too.
Southern states contribute more and should be given more is a logic which is not followed by these state governments when it comes to their districts. For example, Bangalore, Hyderabad and Chennai get much less in return when compared to backward districts in these respective states. That is how taxes work. High per-capita income states cannot expect a 1:1 cash-back of GST and income tax while poorer states with far larger populations and development gaps are left behind. It must be noted that West Bengal, a non-BJP state for decades till 2026, remains among the biggest recipients. The 16th FC has even added weight for contribution to GDP, a criterion that helps high-performing states.
“Double engine” is about coordination, not a secret fund tap. National highways, railways, defence, digital public goods and capital-assistance loans serve the whole country. Reducing a constitutional formula to a North-vs-South wedge may make good TV; it is a poor argument for cooperative federalism. India is one Union, not a ledger of political scores.
'Double engine' states from the north are getting more benefits than single engine states from the south even though the latter contribute far more revenue argues
@Bhatti_Mallu