Share of States in Central Tax Revenues

The proportion of States’ share in Central taxes is recommended by the Finance Commission constituted every five years. As per accepted recommendations of 13th Finance Commission (FC-XIII), the States’ share has been fixed at 32% of the net proceeds of shareable Central Taxes for the period from 1.4.2010 to 31.03.2015, and accordingly, devolution is being made to the State Governments. The 14th Finance Commission has already been constituted on 2nd January, 2013. The Commission is holding consultation with States and Union Government and is scheduled to submit its report by end of October, 2014 covering its award period from 1.4.2015 to 31.3.2020.