Okay here's one. In the 80s Bulgarian music was the rage for a while. Kate Bush even pinched some for a single. The music was state funded under the communist regime with some help from (more state cash) Radio Sofia.
Can a music sponsored by an institutional state apparatus be considered folk? It doesn't appear to fit the hearthfire and community peg unless a country is a community - which communism might suggest it is. So hang onto your gadulka - is open throated, sheep tending, hot milf in head dress Bulgarian folk music folk music?