Making a better Indian Union

The idea that the southern states are being penalised for better performance overlooks the full costs and benefits of being part of the Union

There is a growing clamour among some prominent politicians and commentators from South India, now labelled “The South Tax Movement”, who argue that they are not receiving a fair deal as part of the Indian Union. They contend that their relative prosperity has resulted in them transferring resources to poorer northern states. They submit that Karnataka gets only 15 paisa for every rupee of tax paid, and Tamil Nadu gets 29 paisa, whereas Uttar Pradesh gets Rs 2.73, and Bihar gets Rs 7.06. They assert that they are being penalised for better economic management, while the poorer northern states are