Why are South Indian States raising concerns about their share from the Central pool of revenue?
Exploring the claims of disparity in revenue allocation to South Indian States.
- Population Density: South Indian states have a higher population density compared to some northern states, leading to a higher demand for resources and services.
- Economic Contribution: States like Karnataka, Tamil Nadu, and Kerala contribute significantly to the country's GDP, yet do not receive proportionate shares in the central pool.
- Historical Disparities: The existing allocation formula favors states with larger landmasses, overlooking the needs and development requirements of states with denser populations.
- Infrastructure Development: Some South Indian states argue that they require more funds for infrastructure development due to urbanization and industrial growth.
- Fairness in Allocation: South Indian states seek a fair and just distribution of revenue to address the growing disparities and ensure equitable development across all states.
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3 months ago