India has a large vertical fiscal gap, which has been increasing. The reason is that while the Constitution assigns the most buoyant taxation powers to the Union, it allocates more spending responsibilities to the states.
South India's situation is unlike any in large federal unions across the world. US, UK, China, Germany, and Spain correct their fiscal imbalances through tax policy. India is making it worse.
China patiently invested capital, skill and technology in coal gasification. Unlike it, we won’t move from words to action. As crude prices decline, we lose interest.
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