WHAT ARE THE DIFFERENCE MODE PF TRANSFER OF FUNDS FROM THE CENTRE TO THE STATE? DISCUSS.
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There are three different modes of transfer of funds from the center to the state are:-
(1) The center collect certain taxes ( particularly personal income tax and excise duties) and allocates a share of the tax, proceed to the states. In order to the streamline such allocation the Constitution provides for selling
up of a finance commission every five years, which suggestes crition of such sharing between the center and the states on the one hand and among- St different states on the other.So far twelve finance commission have been set up and each finance commission has suggested formally for devolution of funds.The factors taken into account while suggesting such formally have been poverty Bach wardness, tax effort discipline and population.
(2) Mode of transfer of funds from the center to the states is the grants and loans extended to the states for implementation development plans.
(3) The third mode of transfer of funds from the center to the states is the grants given by central minister to their counter parts in different states for specified projects.Such projects are Whaley founded by the center.
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(1) The center collect certain taxes ( particularly personal income tax and excise duties) and allocates a share of the tax, proceed to the states. In order to the streamline such allocation the Constitution provides for selling
up of a finance commission every five years, which suggestes crition of such sharing between the center and the states on the one hand and among- St different states on the other.So far twelve finance commission have been set up and each finance commission has suggested formally for devolution of funds.The factors taken into account while suggesting such formally have been poverty Bach wardness, tax effort discipline and population.
(2) Mode of transfer of funds from the center to the states is the grants and loans extended to the states for implementation development plans.
(3) The third mode of transfer of funds from the center to the states is the grants given by central minister to their counter parts in different states for specified projects.Such projects are Whaley founded by the center.
I HOPE IT WILL HELP YOU..
THANK YOU.....
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