Tax Devolution #TaxDevolution

  Tax devolution (from the Divisible Pool) is the primary instrument to attend the issue of ‘horizontal imbalances’ of revenue accruing to the state.

  Advising a formula to distribute the Union tax proceeds between Union and the States is the most important task of the FC, as the share of states in the net proceeds of Union taxes is the predominant channel of resource transfer from the Centre to states.