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Monday, 21 August, 2000, 15:45 GMT 16:45 UK
Row over Indian revenue sharing
Delegates from about 10 Indian states are meeting the Indian prime minister in Delhi to put pressure on the government to withdraw proposals for a new revenue sharing arrangement among the states. They say the plans will penalise those states which have improved their economic performance. The delegates say they have no objection to the government's decision to allocate more money to the poorer Indian states. But to do so at the expense of other states which have managed to carry out reforms despite limited resources would be sheer injustice, they say. The proposals were made by the finance commission, which is traditionally responsible for determing how resources are shared between the central government and the states. A BBC correspondent says the dispute comes at a time when regional parties have become more prominent in national politics. From the newsroom of the BBC World Service |
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