Economics
The Politics of Fiscal Federalism and Intergovernmental Transfers
Quick fact
In India, the distribution of central tax revenue to states is governed by a Finance Commission, but studies show that states with swing voters in national elections often receive significantly more transfers, even after accounting for poverty and need.
Why this is interesting
Why do some states receive more money from the national government than they pay in taxes, while others get less? The answer is not just economic—it's deeply political.