White Paper on Indian States (1950)/Part 9/Financial Adjustments on Capital Account

by Ministry of States, Government of India

Financial Adjustments on Capital Account

195. Subject to certain necessary modifications as to details, the Committee's recommendations about the apportionment and allocation of assets and liabilities have been accepted by all States.

In Madhya Bharat, Rajasthan, PEPSU and Saurashtra, the Committee expected that there would be a surplus of liquid assets over liabilities; it recommended that a portion of this surplus (5 per cent. in the case of PEPSU and 10 per cent. in other cases) should be allocated to the Centre for expenditure on federal objectives in those areas. It was, however, subsequently agreed to waive this in all cases except Saurashtra, where certain concessions were made in other directions.