Page:White Paper on Indian States (1950).pdf/102

 (iv) that, to the extent that the loss of revenue from those assets. . . . is likely to cause sudden dislocation of the finances of any State, the problem will be one of necessary financial adjustments on revenue account between such State and the Centre, i.e., should form part of the over-all problem of the financial consequences of the integration to be dealt with under item (4) of our Terms of Reference."

(3) Finally, as regards transitional financial adjustments required on revenue account and the need for gradualness in the process of financial integration, so as to avoid any sudden dislocation of the finances of the States, the Committee recommended as follows [paragraph 2(c) of Part II of its Report]:—

The foregoing recommendations and the action taken thereon are explained in the succeeding paragraphs.