For subscribers
North-South tax debate turns political in India
Sign up now: Get insights on Asia's fast-moving developments
The north-south dispute over federal funds stems from the lower share of taxes that are transferred by the central government to the less populous and fiscally stronger southern states.
PHOTO: AFP
Follow topic:
BENGALURU – Southern states in India are clamouring for a larger share of common taxes distributed by the central government, with the dispute assuming political overtones as a battle between the north and south of the country.
In recent weeks, leaders from southern states have protested in New Delhi and issued full-page newspaper advertisements for a greater allocation of common taxes, which they say have shrunk under Prime Minister Narendra Modi’s government.
