ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Relative Tax Effort of States

AII the Finance Commissions (except the Sixth) have recognised tax effort of a state as a factor to be considered in the allocation of the divisible pool of financial resources among the states. To recognise this is one thing, but to follow it up in the allocation formula with the help of a well-defined methodology is another.

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