India, Feb. 2 -- The 16th finance commission's decision to tweak the formula for devolution of taxes to states received a mixed response on Sunday with some states welcoming the changes that resulted in a higher share for some provinces and others criticising the move to do away with revenue deficit grants and state-specific grants.
There was no change in states' share in central taxes from the 15th FC and it will continue to be 41%.
But contribution to India's GDP was introduced as a new criterion with a weight of 10%. Demographic performance was assigned a lower weightage and will be determined by population growth figures between 1971 and 2011 census, not changes in total fertility rate.
As a result, the five biggest losers among bi...
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