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Budget 2022: Non-BJP states looks askance at the Centre’s financial muscle

While constitutional obligations will have to be met, there is huge discretionary powers with the Centre; states are looking at adjusting to life after the cessation of the GST compensation by June-end

January 31, 2022 / 07:26 PM IST
The tussle between the Centre and states over allocations is by no means new. (Photo by George Becker from Pexels)

The tussle between the Centre and states over allocations is by no means new. (Photo by George Becker from Pexels)

In these days of shaky federalism, states – particularly non-BJP ones - will be looking closely at the budget. The trend thus far should stick to form; politics- for that one day of the Union Budget, takes a back seat, apart from routine disagreements by those in the political opposition.

Yet, one can never be sure, until the Budget papers are laid out on the floor of the Parliament.

``Disagreements between the ruling party at the Centre and the states is by no means new. States have in the past – mostly during the heyday of the Congress rule - protested against allocation of resources to non-Congress parties in a big way,” said Prof Arun Kumar, well-known economist who has spent many years in JNU.

Nonetheless, what tops the states’ concern is how they will adjust to life after the cessation of the GST compensation.