In an interview that analyses the double grievance felt by the southern states, former Governor of the Reserve Bank of India, Duvvuri Subbarao, says, “The southern states are being penalised, both economically and politically, for their success in population control.”

Economically, they perceive that they are contributing more to the national tax pool then they receive in return. As Subbarao puts it “less than a rupee for every rupee sent”. In contrast, northern states with higher populations and lower per capita incomes often receive more than they contribute. As a result, Subbarao says, “southern states are beginning to question whether they are being unfairly burdened". This, he says, “strikes at the heart of federal equity” and as a result, “the compact of co-operative federalism begins to fray”.

Watch the full interview.

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