New Delhi, Feb. 1 -- Budgets are as much about politics as they are about sound finances and hard-headed economic calls. Where does the 2026-27 Budget stand on this front?

The biggest news is not from the Budget per se, but the new fiscal federalism framework under which it has been prepared, namely, the 16th Finance Commission (FC) awards. It has not changed the overall share of states in central taxes, which continues to be 41%. However, what has changed, and it is a big change, is the formula which is used to distribute these taxes among individual states. The 16th FC awards, are perhaps the first decisive step to allay what many have described as the growing North-South (it is actually more poor state versus rich state) divide in Ind...