K. Santhanam warned the Constituent Assembly that the fiscal provisions would impoverish the provinces. Which of the following reasons did he give for this?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Most taxes, except land revenue, had gone to the Centre
Option (1) Estate duties had been made the preserve of the Centre — Incorrect. Estate duties were assigned wholly to the states. They were never a central tax.
Option (2) The states had been barred from taxing bottled liquor — Incorrect. The states could levy the hugely profitable tax on bottled liquor.
Option (3) Income tax had been made the preserve of the Centre — Incorrect. Income tax was shared between the Centre and the states, so it was not a central preserve.
Option (4) Most taxes, except land revenue, had gone to the Centre — Correct. Santhanam said most taxes, except land revenue, were the preserve of the Centre. Without money the states could not take up development work.
NCERT (2026-27): “4.1 “The centre is likely to break” … |