The recent protests by Southern state governments, notably Kerala and Karnataka, supported by other non-Bharatiya Janata Party-ruled states, have highlighted concerns regarding fiscal federalism in India. Fiscal federalism is concerned with understanding which functions and instruments are best centralised and which are best placed in the sphere of decentralised levels of government. It involves vertical and horizontal dimensions. Within the domain of vertical devolution, which includes sharing of resources between the Union and states, there are two disturbing trends that need urgent redressal, as argued by professor R. Ramakumar.