Business Standard

Potentially disruptive north-south divide

For national harmony, allocation of revenues and parliamentary seats to states should continue to be based on the 1971 census


Jaimini Bhagwati
Over the past three decades, since the economic reforms of the early 1990s, per capita incomes in south Indian states have risen substantially faster than in the larger north Indian states. In 1990-91, per capita income in Karnataka was 1.7 and 1.3 times higher than that of Bihar and Uttar Pradesh, respectively. By 2017-18, the same numbers were much higher at 4.7 and 3.3 times and that trend has continued. Table I provides a listing of per capita incomes, populations and the numbers of seats in the Lok/Rajya Sabha for several states. 

Allocation of tax revenues by successive Finance Commissions
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of or the Business Standard newspaper

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First Published: Jan 28 2020 | 10:40 PM IST

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