The 15th Finance Commission, which submitted its report to the President on Monday, is learnt to have retained states aggregate share in the tax pool at the same level as by the previous Commission.As in FY21, 41% of the divisible segment of central taxes may go to all states/UTs, except J&K and Ladakh and an additional 1% to the latter two in the five years to FY26. This is against a 42% share for all states including the then J&K, during FY16-FY20. All revenues received by the Centre, including the divisible taxes and even the borrowed funds flow into, will have to expend a tidy sum each year during the 15th FC award period towards a dedicated special fund for modenisation of defence/internal security forces. This will effectively reduce the states’ tax receipts from the Centre even further.
Courtesyg: Google (photo)
