Thursday, February 19, 2015

Basis of distribution of taxes and grants to the states

On what basis the Centre distributes tax and grants to the states. Are the all states get equally and are they discriminated in any way in the allocation?

Distribution of tax revenue is detailed under the constitution. Under the respective lists under 7th schedule.
The non - tax revenue sharing and grants are determined by the Finance Commission.
All states getting equally would be unjust.
It is based on the FC’s recommendations. And the new Act will also deal with apportion taxes as generated by them

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