Resource sharing between Union and State Governments

Indian Economy – Financial Distribution between Union and States – PYQ Points

• Taxes collected by the Central Government from the following:
  1. Customs Duty
  3. Excise Duty
  (Tax on agricultural land value and tax on agricultural property are collected by the State Government).
• The year in which all tax revenues became shareable between the Centre and the States was 2000 AD.
• Grants-in-aid are given to States in order to assist them in undertaking development activities and implementing welfare schemes.
• Taxes levied by the Union Government but collected and appropriated by the States:
  (ii) Stamp Duty
  (iii) Excise duties on medical and toilet preparations.
• Federal Finance relates to financial relations between the Centre and the States.
• Revenue from lotteries organized by the Central or State Governments accrues to the Union Government.
• Incorrectly paired (Tax and Authority):
  (iii) Tax on consumption or sale of electricity – Union Government (Incorrect; it belongs to the State Government).
  (iv) Land revenue – Union Government (Incorrect; it belongs to the State Government).
  (Answer: (iii) and (iv) are incorrect).
• As per