India is a nation defined by its vast tapestry of languages, cultures, traditions, and religions. This immense diversity is unified under the country's federal structure, which ensures that religious and ethnic minorities find representation and a voice. India’s 28 states and Union Territories are designed to enjoy their own specific powers through this federal framework. However, since the BJP-led government took power at the center in 2014, the federalism of the country has increasingly been called into question. The Modi regime’s decision to revoke Article 370, which stripped Jammu and Kashmir of its special autonomous power, is a primary example. Beyond this, several other attempts are taking place under the guise of language, culture, and religion to erode federal values. One of the most prominent methods of this perceived overreach is the withholding of financial resources from states like Kerala.

The Impact of the 15th Finance Commission:
The 15th Finance Commission, under the leadership of N.K. Singh, introduced a specific methodology for distributing financial resources among states and Union Territories. One of the primary metrics used is "income distance," which involves distributing money based on a state's GDP and its population according to the 2011 census. Under this logic, a state with a lower GDP and a higher population receives more aid from the central government. While this aims to support developing regions, it often penalizes high-performing states. Kerala currently stands in 11th position regarding its Gross State Domestic Product (GSDP). In the 2022-23 period, Kerala's GSDP was 10,236 billion, and it grew by 6.5% during the 2023-24 period. Despite Kerala contributing 4% of India’s total GDP, the state ranks only 15th in terms of receiving funds from the center. Consequently, as per the 15th Finance Commission's criteria, states like Bihar and Uttar Pradesh receive significantly higher financial aid compared to Kerala.

There is a growing sentiment that the Central Government is expressing its political disagreements with the Kerala government through the distribution of aid, a tendency many view as anti-constitutional. This friction has been evident during times of humanitarian crisis. When the devastating floods hit Kerala in 2018, the Central Government did not permit the state to accept financial borrowing or aid from the UAE. More recently, following the Wayanad landslide in 2024, Kerala required approximately 2,000 crores for essential rehabilitation efforts, yet the Central Government allocated only 529 crores. This trend is reflected in the broader budget as well; in Kerala's total income for 2025, the Central Government's contribution stands at only 25.63%. This figure is significantly lower than the contributions seen over the last decade, highlighting a narrowing financial pipeline for the state.