This book addresses the need for an equal distribution of the benefits of India's unprecedented economic growth since the late 1990s. By focusing on two middle-income states - Tamil Nadu and Karnataka - during the period 1985-2000, it seeks to understand why some states have been moreeffective in reducing poverty than others. It investigates the relationship between the policies that consolidate the wealthy and those that favour the poor. For this, it combines analyses of state-level budgetary processes with studies of the political history of each state. The former is donethrough a detailed study of the states' revenue and expenditure patterns. By separating state finances into appropriate sectoral heads, the author uncovers revenue and expenditure trends and their impact on different income classes. For a more comprehensive understanding, he also intensively reviews the current literature on this field and links this to the findings ofthe present study. By focusing on the rapid growth in different sectors, including IT, he tries to provide answers as to why some sections of the population have been neglected by the economic boom.