White Paper on Indian States (1950)/Part 9/Memoranda of Agreements

by Ministry of States, Government of India

Memoranda of Agreements

198. The Government of India have accepted the recommendations of the Indian States Finances Enquiry Committee as modified in subsequent discussions with the States concerned, and steps have been taken to give effect to federal financial integration accordingly. The Memoranda of Agreements already executed and ratified by the States will now be embodied in formal Agreements. These Agreements will be under:—

Article 306 as respects the abolition of internal customs duties;

Article 295 as respects the allocation and apportionment of assets and liabilities;

Article 291 as respects contribution by certain States to the Government of India towards 'privy purse' payments.

Article 278 as respects transitional revenue adjustments, including the recovery of privy purse payments.

199. The Government of India have already in hand the necessary action to deal with innumerable points of detail—legislative, administrative, budgeting, accounting, etc.—pertaining to particular matters concerning each federal department in the States. These are under active examination, and considerable progress has already been made, in consultation with the States and the Ministries of the Government of India concerned.