constituent assembly of india debates (proceedings)- volume vii

C. P.
West Bengal
Bihar
Orissa
A system of central grants
derived after taking into account
such factors as natural resources,
stage of industrial development,
taxable capacity, etc. is essential,
An expert financial enquiry should
be undertaken.
(1) Provision for federal aid to
provinces for social and
amelioration work.
(2) There should be financial
commission on the lines of the
Commonwealth Grants
Commission in Australia.
If any grants-in-aid or
subventions are given in future
the per capita revenue and
expenditure in each province
during the last 10 years should
be kept in mind. Those with low
per capita revenue should be
given greater assistance than the
richer.
The broad lines of the present
allocation may be maintained in
the new Constitution; but the
subvention of 40 lakhs fixed for
the province should be increased;
it should be stated as a
percentage of the revenues of the
central govt. and in any case
there should be a minimum
annual subvention of 150 lakhs.