The constitution of Finance Commission of India changes in every five years, or earlier. During this period, the Finance Commission was integrated by the orders of the President of India, and submitted the reported within the two years. The Finance Commission distributes the overall acquirement of taxes of the union between the both State(s) and Union.
The 14th Finance Commission has recommended that the net proceeds of the state’s Union Tax revenues increased by 42 per cent, which becomes the largest increment that is increased by 10 per cent. The handover of income should be the primary way to transfer the resources directly to the States.
The 14th Finance Commission has confirmed that the overall assistance of Rs. 2,87,436 crore for the period of five years from 01-04-2015 to 31-03-2020. This assistance is recommended to the municipalities and Panchayatas as Rs. 87,143.80 crores and Rs. 2,00,292.20 crore.
“The financing of NDRF has so far been almost wholly through the levy of cess on select items, but if the cess are discontinued or when they are subsumed under the Goods and Services Tax in future, we recommend that the Union Government considers ensuring an assured source of funding for NDRF”, said by the 14th Finance Commission.
Source: http://www.caclubindia.com/news/state-share-of-union-tax-revenues-raised-to-42-percent–14707.asp#.VO1cNXwsDfI
