Grants from the Union to certain States

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The grants from the union to certain states are being facilitated as per the assessed requirements or in proportion to the contribution made by the individual states towards the gross domestic products of India. Further, the grants from the union to certain states are being facilitated as per the recommendation of the Finance Commission of India. These funds are allocated to the different Indian states or union territories according to the Article 243I of the Indian constitution. The grants from the union to certain states are being facilitated as per the Article 243I of the Indian constitution

The article states that the Governor of any concerned state shall, form a state finance commission within one year from the commencement of the constitution (Seventy-third Amendment) Act, 1992, and thereafter at the expiration of every fifth year. Further, the Governor shall also order the state financial commission to review the financial position of the panchayats and make necessary recommendations on the following guidelines
  • The distribution of funds amongst the state and the panchayats of the net proceeds of the taxes, duties, tolls and levied fees as earned by the state and should be divided between

  • The proportion of such allocation between the panchayats at all levels should be in accordance with the of their respective shares of such proceeds

  • The quantum of the taxes, duties, tolls and fees, may be assigned as, or fixed by, the panchayats

  • The grants-in-aid may be offered to the concerned panchayats from the consolidated fund maintained by states


The grants from the union to certain states are being facilitated to improve the financial position of the panchayats
  • The Governor of any state may order the state finance commission any instructions in the interests of sound finance of the panchayats

  • The state finance commission formed under Article 243 I, shall make recommendation in the interests of sound finance of the municipalities in accordance to the Article 243Y of the constitution of India

  • The Governor is required to furnish recommendations made by the state finance commission along with an explanatory memorandum, stating the action taken, for ratification by the legislature of the state


The Indian states and union territories those are facilitated with the Grants from the Central Government
  • Andhra Pradesh
  • Arunachal Pradesh
  • Assam
  • Bihar
  • Chhatisgarh
  • Goa
  • Gujarat
  • Haryana
  • Himachal Pradesh
  • Jammu & Kashmir
  • Jharkhand
  • Karnataka
  • Kerala
  • Madhya Pradesh
  • Maharashtra
  • Manipur
  • Meghalaya
  • Mizoram
  • Nagland
  • Orissa
  • Punjab
  • Rajasthan
  • Sikkim
  • Tamil Nadu
  • Tripura
  • Uttaranchal
  • Uttar Pradesh
  • West Bengal
  • Andaman & Nicobar Islands
  • Chandigarh
  • Daman & Diu
  • Delhi
  • Dadra & Nagar Haveli
  • Lakshadeep
  • Pondicherry