India, Feb. 2 -- The biggest story of the day may well be the 16th Finance Commission's recommendations that have been accepted by the government and which, while keeping the share of states the same as in the 15th Finance Commission, has sought to do its bit to address challenges to the country's fiscal federalism framework -- mostly arising from high-performing states feeling short-changed. It has done so by primarily, introducing the size of a state's economy as a variable, and altering both the measure and the weightage assigned to demographic performance.

Before she began her budget speech, finance minister Nirmala Sitharaman told the Lok Sabha that the government had accepted the 16th FC's recommendations. Her budget speech said th...