The North-South Divide: Key Issues

The Southern States are Less Dependent on Centre’s Assistance

• The southern States are less dependent on transfers from the Centre than many of their northern peers, but a cut in transfers could leave their fiscal situation precariously poised and upset some of their expenditure plans.
• Finance Commissions are obliged to ensure the poorer States have adequate resources to finance socioeconomic development and critical infrastructure, to ensure balanced regional development that’s inclusive and equitable. That would invariably mean higher transfers to the laggard States, sometimes at the expense of the more prosperous ones.

Southern States’ Share in Population has ....