The gap in the financial field has now been filled by the arrangements which have been negotiated with the States on the basis of the recommendations made by the Indian States Finances Enquiry Committee. The fundamental basis of this scheme is that federal financial integration of the States is a necessary consequence of the basic conception underlying the new constitution of the Union of India – that of Provinces and States as equal partners. The scheme, therefore, is based upon complete equality between the Provinces and States in the following respects:
