Question : Apportioning of Tax Income

a) whether the Government is apportioning 42 per cent of the Tax income to the State Government and if so, the details thereof;

b) whether any decision has been taken to change the proportion to the State Governments and if so, the details thereof;

c) whether any reduction in the proportion of allotment will affect the financial capacity of the State; and

d) if so, the details thereof along with the reaction of the Government and 15th Finance Commission in this regard?

Answer given by the minister

a) Based on the accepted recommendations of the Fourteenth Finance Commission (14th FC), the Government of India apportions 42 percent of net proceeds of Union Taxes and Duties to the State Governments. Details of quantum of net proceeds of Union Tax and Duties apportioned to the State Governments are below:

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Actuals Actuals Actuals Actuals BE
2015-16 2016-17 2017-18 2018-19 2019-20
506192.96 608000.31 673005.29 761454.15 809133.02

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b) There is no decision to change the proportion to the State Governments.

c) Does not arise.

d) Does not arise.

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