Enlightened leadership needed to resolve north-south divide on distribution of tax pool: Ex-RBI Guv Duvvuri Subbarao

Former RBI Governor Duvvuri Subbarao has argued that enlightened leadership at both the Centre and State levels is necessary to resolve the north-south divide in determining the distribution of the tax pool among states. He cited the fact that richer states like Tamil Nadu and Maharashtra receive less than a rupee for every rupee they contribute to the Centre's taxes, while poorer states like Bihar and Jharkhand receive more than a rupee.