Indore, Mar 7: Madhya Pradesh Culture Minister Usha Thakur on Sunday stressed the need for adopting Vedic lifestyle for protection against coronavirus, and claimed that 'havan' (ritual burning) of a cow dung cake can keep a house sanitised for 12 hours.

She was speaking during a function at the Indore Press Club.

"In order to combat the COVID-19 outbreak, Vedic lifestyle has its own role to play along with allopathy. The pandemic has sent out a message that we have to return to the Vedic lifestyle," Thakur said.

"Mix ghee (clarified butter) made out of cow milk with rice. If you add this mixture on a cow dung cake during havans at the time of sunrise and sunset, then your place would remain sanitised for 12 hours," she added.

She said that her advice may appear strange to people, but this tip to keep houses sanitised was not imaginary.

"This is science...," she claimed.

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New Delhi: The Union government is considering reducing the share of tax revenue allocated to states, sources familiar with the matter have said.

The proposal will be submitted to the constitutionally-appointed Finance Commission of India, which makes recommendations on tax sharing and other aspects of Union-state fiscal relations. The commission, headed by economist Arvind Panagariya, is expected to submit its recommendations by October 31, with implementation set for the 2026-27 fiscal year. The recommendations are binding.

According to one source, the Union government intends to lower the states' share of tax revenue from the current 41% to at least 40%. A cabinet decision on the proposal is expected by the end of March before being forwarded to the Finance Commission. A 1% reduction in states' share would give the Union government approximately ₹35,000 crore ($4.03 billion), based on current tax projections.

The Ministry of Finance and the Finance Commission have not yet responded to queries regarding the proposal.

The share of central taxes allocated to states has increased from 20% in 1980 to 41% at present. However, the Union government’s spending requirements, particularly during economic slowdowns, have led to calls for a reduced allocation to states. India's fiscal deficit is projected at 4.8% of GDP for 2024-25, while state deficits stand at 3.2% of GDP.

States account for over 60% of total government expenditure, primarily focusing on social infrastructure such as health and education. Meanwhile, the Union government allocates more resources to physical infrastructure. The introduction of the Goods and Services Tax (GST) in 2017 has limited states' ability to generate independent revenue. Additionally, since the COVID-19 pandemic, the Union government has increased the share of cesses and surcharges, taxes not shared with states, to over 15% of gross tax revenue, up from 9-12% earlier.

The Union government is also expected to propose measures to discourage states from offering cash handouts, debt waivers, and other welfare schemes often labeled as "freebies" for political gains. One possibility under consideration is linking Union grants to states' adherence to specific fiscal conditions.

Over the past five years, revenue-deficit grants to states have declined from ₹1.18 lakh crore ($13.61 billion) in 2021-22 to an estimated ₹13,700 crore ($1.58 billion) for 2025-26. It remains unclear whether grants will be denied to states that continue to offer such welfare schemes.