The 16th Finance Commission and the ‘41% Illusion’: How India’s Fiscal Federal Architecture Is Being Quietly Re-engineered
On February 1, 2026, the Ministry of Finance issued an Explanatory Memorandum responding to the recommendations of the Sixteenth Finance Commission (FC16). On the surface, the Union government appeared cooperative: it accepted the States’ share in the divisible pool at 41%, accepted the horizontal devolution formula, the local body grants, and the disaster management corpus….