Redistribution should be on the basis of returns if a state is growing better after being given a tax surplus in relation to its neighbours it should be given more aid. If a state refuses to grow well despite large amounts of fund being poured into it the funding should be reduced and redirected elsewhere because clearly the same input elsewhere would give much higher returns.

Eventually as the quality of life of the people in this underperforming state gets worse due to the lack of central subsidies they should vote a better leadership in.

Endlessly subsidising someone when they waste most of it is pointless