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India plans to cut state share of federal taxes, potentially straining relations and funding.
India's federal government plans to reduce the share of federal tax revenues given to states from 41% to at least 40%, starting in 2026.
This proposal, if approved, could lead to tensions between federal and state governments and affect state spending.
The change is part of efforts to manage federal spending and discourage states from offering political "freebies" like cash handouts.
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India planea recortar la parte estatal de los impuestos federales, potencialmente tensando las relaciones y la financiación.