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States receive 41% of divisible tax pool

6 November 2026 · ⏱ 2 ನಿಮಿಷ · GS3 Economy - Centre-State fiscal relations

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ಸುದ್ದಿಯಲ್ಲಿ ಏಕೆ?

States get 41% of the divisible pool in 14 instalments: the Finance Commission devolution formula GS3 tests

Advance tax devolution of ₹1.09 lakh crore; UP received the most.

Why it matters: asked in UPSC 2015; factual, Prelims-type

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What you need to know

2 ನಿಮಿಷ

The Centre devolves 41 per cent of the taxes it collects among States in 14 instalments a year.

Recently an advance instalment of about ₹1.09 lakh crore was released, with Uttar Pradesh getting the largest share.

ಮೂಲಗಳು: Topper IAS editorial (PIB / The Hindu / Indian Express)

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ಮುಖ್ಯ ಅಂಶಗಳು

Remember these

  • States receive 41% of the divisible pool of Union taxes.
  • Devolution is paid in 14 instalments a year.
  • An advance instalment of about ₹1.09 lakh crore was released recently.
  • Uttar Pradesh received the largest share.
  • The 14th Finance Commission had recommended 42%; it was trimmed to 41% after the reorganisation of Jammu and Kashmir.
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ಪ್ರಿಲಿಮ್ಸ್ · ಮೇನ್ಸ್

How the exam will ask it

ಪ್ರಿಲಿಮ್ಸ್

  • The divisible pool consists of Union tax revenue excluding cesses, surcharges and the cost of collection.
  • Finance Commissions are constituted under Article 280 of the Constitution, and Article 270 provides for the sharing of taxes between the Centre and States.
  • The share of States in the divisible pool is currently 41%, down from the 42% recommended by the 14th Finance Commission.

ಮೇನ್ಸ್

GS3 (Indian Economy) and GS2 (Federalism): vertical devolution via the Finance Commission under Article 280 and Article 270 addresses the Centre-State fiscal imbalance, yet the growing use of cesses and surcharges outside the divisible pool shrinks States' effective share. Way forward: limit cesses and surcharges, keep horizontal devolution criteria transparent and balanced between equity and efficiency, and keep instalments timely so States can plan spending.

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PYQ connection

A question UPSC has already asked on this

🔁 UPSC PYQ CONNECTION · UPSC CSE 2015

With reference to the Fourteenth Finance Commission, which of the following statements is/are correct?

  1. It has increased the share of States in the central divisible pool from 32 percent to 42 percent.
  2. It has made recommendations concerning sector-specific grants.

Select the correct answer using the code given below.

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2
ಉತ್ತರ ನೋಡಿ

ಉತ್ತರ: A

Why this matters: today's issue is directly connected to a concept UPSC has already tested. Read the story with this question in mind.

Practise this PYQ →
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Quick recall

Answer before you reveal

ಪ್ರಸ್ತುತ ಅನುಸರಿಸಲಾಗುತ್ತಿರುವ ಹಂಚಿಕೆ ಸೂತ್ರದ ಪ್ರಕಾರ ಕೇಂದ್ರದ ತೆರಿಗೆಗಳ ವಿಭಾಜ್ಯ ಪೂಲ್‌ನಲ್ಲಿ ರಾಜ್ಯಗಳಿಗೆ ಒಟ್ಟಾರೆ ಎಷ್ಟು ಪಾಲು ದೊರೆಯುತ್ತದೆ?

  1. 32%
  2. 40%
  3. 41%
  4. 42%
ಉತ್ತರ ನೋಡಿ

ಉತ್ತರ: C — ಸರಿ: 41% — ರಾಜ್ಯಗಳಿಗೆ ವಿಭಾಜ್ಯ ಪೂಲ್‌ನ 41% ದೊರೆಯುತ್ತದೆ, ವರ್ಷಕ್ಕೆ 14 ಕಂತುಗಳಲ್ಲಿ ಪಾವತಿಯಾಗುತ್ತದೆ; ಇದು 14ನೇ ಆಯೋಗದ ಪ್ರಮಾಣಕ್ಕಿಂತ ಒಂದು ಅಂಶ ಕಡಿಮೆ. • 32% — ತಪ್ಪು: 32% 13ನೇ ಹಣಕಾಸು ಆಯೋಗದ ಶಿಫಾರಸಾಗಿತ್ತು; ಅದು ಈಗ ಜಾರಿಯಲ್ಲಿಲ್ಲ. • 40% — ತಪ್ಪು: ಇತ್ತೀಚಿನ ಯಾವುದೇ ಹಣಕಾಸು ಆಯೋಗವು 40% ಶಿಫಾರಸು ಮಾಡಿಲ್ಲ. • 42% — ತಪ್ಪು: 42% 14ನೇ ಹಣಕಾಸು ಆಯೋಗದ ಪ್ರಮಾಣ; ಜಮ್ಮು ಕಾಶ್ಮೀರದ ಪುನರ್‌ರಚನೆಯ ನಂತರ ಅದನ್ನು 41%ಕ್ಕೆ ಇಳಿಸಲಾಯಿತು.

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