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States Demand Larger Share in Divisible Tax Pool

Syllabus: GS-2: Centre-State Relations GS-3: Fiscal Policy , Government Budgeting Focus: Several states have urged the 16th Finance Commission to increase their share of the divisible tax pool, citing concerns over shrinking allocations due to cesses and surcharges. This demand raises critical issues of fiscal autonomy, inter-state inequality, and governance reforms at the state and …

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