Course Name: In-depth study of Centre State Relations Lesson Name: Union State financial relation - II Presented by Bhavin Sangoi
About me B.A in Political Science & Psychology Appeared in UPSC CSE Mains ecin Indian Polity, International Relations, economics &mental Ability since 5 years Experience of teaching for various competitive exams such as NTSE, CET & UPSC Like, Rate and Review this course Follow me on: https://Unacademy.in/user/BhavinSangoi
Duties distributed between Union and States According to article 270, the taxes and duties mentioned in the union list (except duties and taxes mentioned in Article 268, 268A, 269, on taxes and any cess levied for specific purposes) shall be levied and collected by the centre but distributed between the centre and states, in the manner as prescribed by the President of India on the recommendation of finance commission
Surcharge Surcharge - According to article 271, Union government can impose surcharge on taxes and duties mentioned in Article 269 and 270 and amount collected from surcharge would be exclusive kept by Union government However no Bill for imposing Surcharge shall be introduced in Parliament without prior recommendation of the President of India
Cess Cess-It is levied for the specific purpose and its entire net proceeds is kept Union government The amount levied through Cess can't be utilized for any purpose other than which it was imposed
Protection of the State's interest According to Article 274, Prior recommendation of President is required to impose 'taxes or duties in which states are interested varies the meaning of the expression "agricultural income" for the purpose of income tax Affects the principle on which money are distributable to the states
General Grants CAccord ng to article 275 (1), Parliament may by law provide grants-in-aidto the States who are in the need of assistance. The sum would be charged to the Consolidated fund of India and different sum may be fixed for different States The sum are fixed on the recommendation of Finance commission
Specific Grants According to article 275 (2), grants-in-aid shall be paid out of the Consolidated fund of India to meet the cost of those development schemes undertaken by the State with the approval of Government of India for promoting the welfare of Schedule Tribes or development of Schedule Area in the State. le 275 (2) grants-in-aid shall be met the cost of those development schemes undertaken by the
Discretionary Grants Under Article 282, the Union or a S Under Article 282, the Union or a State can make any grants for any public purpose, not withstanding that the purpose is not one with respect to which Parliament or the Legislature of a State, may make laws. The grants under Article 275 which can be dispensed only on the recommendations of the Finance Commission and are charged, grants under Article 282 can be made with no such restriction and are voted.
BA Political Science and Psychology, Mumbai University. Teaching Polity, Economics and international relations for 7 years.