Budget 2026–27 exposes strains in India’s fiscal federalism as the Centre retains policy control while shifting welfare costs to States through unfunded mandates and CSS changes. Non-shareable cesses shrink States’ revenues, social spending stagnates, and a capex-first approach sidelines human capital, prompting calls to rationalise cesses and revive cooperative federalism.
Click to View MoreThe replacement of MGNREGA with the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) marks a major shift in India’s rural employment policy. While MGNREGA functioned as a universal, demand-driven and rights-based employment guarantee that supported vulnerable rural households, the new framework emphasises fiscal discipline, centralised planning and productivity-linked employment. The transition reflects the government’s intent to reform rural welfare delivery, but it also raises concerns about dilution of the right to work, increased burden on states, and potential exclusion of marginalised communities.
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