South India funds India?

For every Rs 100 paid in direct tax, how much each state gets back : r/india

It’s pretty astonishing to see that it’s the Southern fringe (and the erstwhile Punjab) that’s subsidising the rest of India. There is the Southern coastal theory that AASI moved via Sindh, Gujarat and then the Deccan-Dravidian spaces.

Furthermore what’s fascinating is that Partition, outside of South India, really was a contestation of some of the richest bits of the Subcontinent (Punjab and Bengal).

It would have been good to see the numbers for J&K but it’s fairly apparent the NorthEast aren’t going to see such a sweet deal. It’s tough being a Southerner these days (whether the US, India or even Iran). In Iran, it’s South Iran and her oil & gas fields, which subsidises the rest of the country.

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girmit
girmit
22 hours ago

These figures are for the return ratio on direct tax paid. Next steps would be to consider indirect taxes and central GST, which taken together form the common divisible pool that finally gets devoluted back to the states. And then on top of that to consider the agricultural subsidies and central welfare schemes that flow independently of this devolution. Punjab turns into a major net receiver of central funds at a nearly 2:1 ratio. Haryana remains a contributor, but at a much more modest 70-80% return. And in their case, there are a vast number of corporate HQs in Gurgaon that exist due to proximity to central government and nothing else, which inflates the sense of value that the state economy is hosting.

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