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People from some states have to slog it out to generate external revenue( i mean bring money from outside the country through skilled work, rather than selling/exporting indian resources to foreigners and claiming to bring revenue), whereas that (tax)revenue is taken away and handed out to bludgers in certain regions, and motivating them to selfishly replicate themselves without contributing productively to the nation and growing at the expense of others. This wouldnt be too much of a problem in a homogenous nation, but India is anything but a homogenous country and this translates a one group taking advantage of other. I cursed bill gates for trying to reduce the population in certain regions of the country, but now im thankful he is planning to sterlise people in certain regions.
Why not a more fair taxation system, where the state govt gets majority of the corporate and income taxes…thereby transferring funds,power and accountability locally..which is also much more easy to manage rather than a centralised control, which is the biggest problem with the current system – the fate and power to influence people in the hands of an unrelated very few in the centre. If the taxes/revenu is shared well…people will be motivated to make things better as the control/funds lies locally.
http://mla.prsindia.org/sites/default/files/policy_guide/ShareinCentralTaxes.pdf

BTW the above is only 32 % of total revenue(states share), god knows how the rest is being appropriated by the people in Delhi.

Why cant there be limited governance, especially at the centre. Why cant states and the local municipalities be given enough control and power over the development. Why cant they properly privatize essential services rather than the govt having to reluctantly take up all the services. Even if I pay more for private companies, I will have a peace of mind in knowing that the idiots in centre are not mis-appropriating my revenue contribution and acting like they are the masters of me. Seriously the govt giving handouts to poor areas will work only if the country is culturally and demographically homogenous. Otherwise, it will not only appear like one group is taking advantage of the other but many people will actually try to secure more for their own community and take advantage of the others.  First fix the problem of national identity.we all came from Indus valley civilisation? good..but does everyone agree to that and can we expect no bias based on this – i dont think so. Will happily contribute to center handling defence, judiciary and interstate matters. But a centralised planning commission for the whole nations which decides most of who gets what is ridiculous for a non-homogenous country.

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