A recent analysis highlights the disparity in how much states receive from the Centre for every ₹100 contributed as taxes. Among all states, *Maharashtra receives the least — just ₹6.8, despite being one of the highest contributors. On the other hand, **Arunachal Pradesh tops the list with ₹4,278.8* returned for every ₹100 paid, reflecting the policy of supporting smaller and underdeveloped states.
The Finance Commission uses parameters such as population, income inequality, and development gaps to decide allocations. For instance, Telangana gets ₹43.9, Andhra Pradesh ₹40.5, and Tamil Nadu ₹55.8, while richer states like Gujarat and Karnataka receive relatively less. This redistribution system aims to ensure that backward states, particularly in the Northeast, get adequate support for infrastructure and welfare projects. While wealthier states argue that the imbalance discourages growth, the policy remains crucial for addressing India’s regional disparities.
