Page:White Paper on Indian States (1950).pdf/98

 they are in a state of considerable backwardness compared with Provinces. Government of India must, therefore, undertake a systematic enquiry into this problem with a view to rendering financial and technical assistance at the earliest opportunity; it will not be enough merely to say that as a result of federal financial integration, they will be treated in the matter of grants and other forms of assistance in exactly the same way as Provinces".

190. With these as the basic conceptions, the Committee proceeded to a consideration of the practical consequences of federal financial integration. In the words of the Committee:

Consequently—

On the question of compensation to the States for their federal revenues and assets passing to the Centre, the Committee was equally clear. Its recommendation was as follows:—

"30. A general question which arises in this connection at the very outset and to which we have devoted much attention and we have also