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Covid has exploited the comorbidities of our federalism

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₹156,164 crore compensation during 2021-22 now needs revision because the second wave has impacted economic activity. There was a similar shortfall in 2020-21, and the Centre had agreed, after much coercion, to borrow and pass on a portion of that outstanding to states, repayable from future compensation cess accruals.

In the absence of economic activity and commensurate tax revenue inflows, the Centre will now have to find new ways of transferring additional revenue to states, even if that means expanding debt.The fraying federalist structure also mandates a relook at the Seventh Schedule; this has become especially pressing with the Centre increasingly encroaching upon state territory.

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COVID-19
United States
United States
Cases: 46 252 513
Deaths: 750 423
Recovered: 0
India
India
Cases: 34 321 025
Deaths: 459 652
Recovered: 0
Brazil
Brazil
Cases: 21 835 785
Deaths: 608 235
Recovered: 0
United Kingdom
United Kingdom
Cases: 9 215 683
Deaths: 141 607
Recovered: 0
Russia
Russia
Cases: 8 494 589
Deaths: 237 619
Recovered: 0
Detail statistic
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