¹ THECONSTITUTION (DISTRIBUTIONOF REVENUES) NO.3 ORDER,1990

C.O. 145

Inexercise of the powers conferred by articles 270and 275of the Constitution, the President, after having considered the recommendationsof the Finance Commission, hereby makes the followingOrder, namely:--

1.ThisOrder may be called theConstitution (Distribution of Revenues)No.3 Order, 1990.

2.The General Clauses Act, 1897(10of 1897),shall apply for theinterpretation of thisOrder as it applies for theinterpretation of a Central Act

3.(1)For the purposes of clause (2)of article 270,1.437per cent. ofso much of the net proceeds of taxes on income as does not represent the netproceeds of taxes payable in respect of Union emolumentsshall represent the proceedsattributable to Union territories for each financial year commencing on andafter the 1stday of April, 1990.

(2)The percentage of the net proceeds of the taxes on income, except in so far asthose proceeds represent proceeds attributable to Union territories or to taxespayable in respect of Union emoluments, which is to be assigned to the Statesunder the said clause in each of the financial years commencing on and after the1stday of April, 1990 shall be 85per cent.; and the total amount to be so assignedshall be distributed among theStates as follows:--

4.(1)In accordance with the provisions of clause (1)of article 275,thereshall be charged on theConsolidated Fund of India, in the financial year commencing on the 1stday of April, 1990and each of the four succeeding financial years as grants-in-aid of the revenuesof each of the States specified below, the sums specified against it for thatyear:--

(2)Any sum or sums payable undersub-paragraph (1)shall be in addition to any sumor sums payable to the States under each of the provisos to clause (1)of article 275.

5.The Constitution (Distribution of Revenues)No.4 Order, 1989shall, as from the 1stday of April, 1990,stand repealed.

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1.Published with the Ministry ofLaw, Justice and Company Affairs, NotificationNo. G.S.R. 446(E),dated the 16thApril 1990,Gazette of India, Extraordinary, 1990,Part II, Section 3,sub-section(i).