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Fiscal centralisation peaked in 2020 and has fallen since
The Fiscal Centralisation Index (FCI) is the mean of six components. Four are published fiscal ratios: the cess and surcharge share of gross tax revenue, tax devolution as a share of gross tax revenue, states' own revenue as a share of their revenue receipts, and non-Finance-Commission grants as a share of Union transfers. Two are coded: GST, which from 2017 took most independent indirect taxation away from the states, and the reform conditions on extra borrowing in 2020-21. On a relative 0-1 scale the FCI averaged 0.30 under UPA and 0.43 under NDA. It peaked at 0.87 in 2020, when the cess share reached 24.4%, states' own revenue fell to 52.1% of their receipts and borrowing came with conditions. It was 0.35 in 2026, as devolution rose and the cess share fell. The 2014 value of 0.42 reflects an accounting change, when centrally sponsored scheme funds began to flow through state budgets.
What follows. The NDA's higher average rests on GST and the 2020 borrowing conditions. On the four measured fiscal ratios alone the two eras are close, 0.49 under UPA and 0.45 under NDA.
Fiscal Centralisation Index, 0 to 1
2004-2013 average 0.30; 2014-2026 average 0.43; latest 0.35 in 2026. Source, method and every year.
One of 37 readings of the dataset, rebuilt whenever the data are refreshed. Data vintage 2026-10-10. Cite as Raman, V.S., Some Perspective: India's Political Economy, 2004-2026, someperspective.info, CC BY 4.0.