ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Closure as Lock-Out

taxed states in India, despite its low- income base. Another consequence is that the size of Kerala's plan has always had to be smaller. This in turn has restrained the state from developing its economic infrastructure. The Kerala government feels that the present scheme of central plan assistance is faulty: "Kerala gets no credit for investing, out of its own resources, large sums on human resource development. This, to say the least, is a very discouraging situation!' The Kerala government's memorandum calls for built-in incentives in the devolution formula for states to allocate a higher proportion of their revenue accounts to human, resource development.

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