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16th Finance
With 16th Finance Commission In Their Favour, Non-BJP States Will Stop Attacking PM
PM Modi is apparently very happy that the 16th Finance Commission’s recommendations will put a full stop to Opposition-ruled States attacking him for not giving adequate Central funds. When Finance Minister Nirmala Sitharaman presented the Union Budget 2026, one sentence tucked in the fine print drew the attention of every CM in the country. It was that the Centre had accepted the 16th Finance Commission’s recommendation to keep states’ share in the divisible tax pool at 41%. At first glance, that looked like continuity. But beneath that headline figure lies a quiet revolution. The commission’s new horizontal formula keeps the overall share fixed but changes how it is sliced. For the first time, a state’s contribution to the national GDP carries formal weight—10% of the total formula. This single tweak tilts the balance towards the country’s south and west, where economic output per capita is high, compared to the populous but poorer Hindi-heartland states that had benefited from the old population-heavy criteria. Preliminary calculations suggest that Karnataka, Kerala, Gujarat, Haryana, Tamil Nadu and Maharashtra are the top six gainers. Karnataka alone may receive around Rs 7,300 crore more each year. In contrast, Madhya Pradesh, Uttar Pradesh, West Bengal, Bihar, Odisha and Jharkhand will see smaller shares; MP could lose nearly Rs 7,600 crore. Most losing states are either BJP or NDA-ruled, while the gainers are largely Opposition-governed.  Since the first Finance Commission in 1951, the horizontal formula has revolved around the distances between population, area, and income. The 16th Finance Commission marks a clear break. Echoing Modi’s ideas, Panagariya’s logic: States must show improvement in fiscal discipline, transparency and service delivery to qualify for discretionary grants.

TRENDS & VIEWS

Editor’s Note: Short Post Is Here To Stay…

Time, they say, flies—and how true that is. Here we are celebrating our 5th Anniversary. Five years ago, when Covid-19 was wreaking havoc across the globe, I took a leap of faith and launched Short Post, India’s first website for Authentic Gossip. That was on January 31, 2021. I was convinced there was a clear gap in the market for gossip that was credible, sharp, and impactful—especially if told in just 250 words.

In this, I was fortunate. Scores of senior editors across diverse verticals bought into the idea and, in the process, gave wings to my dream. Quite honestly, Short Post could not have crossed these milestones without the unflinching support of its contributing editors. Like all start-ups, we have seen our share of ups and downs, but these editors have stood by us like a rock. I take this opportunity to doff my hat to them.

Thanks to their commitment, we have published close to 5,000 stories spanning politics, business, entertainment, and sports. I say this with pride: we made our mark as people who matter read us. “Small packs, big impact” truly captures the essence of Short Post.

We all know that Covid-19 has reset businesses worldwide, and the media sector is no exception. In the post-Covid era, investors have become more cautious and selective—and advertisers too. To compound matters, the entry of AI has disrupted the media landscape in equal measure. So far, we have managed to hold our ground, hopeful that some angel investors will take a shine to us.

What gives me confidence is this: AI cannot smell news—especially the gossipy kind. In other words, AI cannot churn out Short Post-type stories, no matter the prompt. That puts us in a safe zone. As someone rightly said, “AI is a co-pilot, not a pilot.”