Civil Service Bytes

Horizontal Devolution Formula  –  Horizontal devolution means transfer of finance between states. The Commission added a new criterion of forest cover for devolution of Central taxes which has gone against the nine states. The panel has assigned 7.5 per cent weight to forest cover for inter-se determination of the shares of taxes to the states, while population carries 17.5 per cent weight, demographic change 10 percent, income distance 50 and area 15 per cent weight. With the addition of the new criterion, Uttar Pradesh is the biggest loser followed by Bihar. Meanwhile, 19 states stand to gain from the new arrangement. Arunachal Pradesh is the biggest gainer. Devolution to states:  It has recommended that devolution should be primary mode of funds transfers to states. States’ share in net proceeds from tax collections be 42% — a huge jump from 32% recommend by the 13th Finance Commission, and the largest change ever in the percentage of devolution. The higher tax devolution w

Horizontal Devolution Formula  –  Horizontal devolution means transfer of finance between states. The Commission added a new criterion of forest cover for devolution of Central taxes which has gone against the nine states. The panel has assigned 7.5 per cent weight to forest cover for inter-se determination of the shares of taxes to the states, while population carries 17.5 per cent weight, demographic change 10 percent, income distance 50 and area 15 per cent weight. With the addition of the new criterion, Uttar Pradesh is the biggest loser followed by Bihar. Meanwhile, 19 states stand to gain from the new arrangement. Arunachal Pradesh is the biggest gainer. Devolution to states:  It has recommended that devolution should be primary mode of funds transfers to states. States’ share in net proceeds from tax collections be 42% — a huge jump from 32% recommend by the 13th Finance Commission, and the largest change ever in the percentage of devolution. The higher tax devolution w