C.O. 46

Datedthe 16th March, 1953

THECONSTITUTION (DISTRIBUTION OF REVENUES) ORDER, 1953

Inexercise of the powers conferred on him by articles 270, 273 and 275 of theConstitution of India and of all other powers enabling him in that behalf, thePresident, after having considered the recommendations of the FinanceCommission, hereby makes the following Order :--

1.This Order may be called the Constitution (Distribution ofRevenues) Order, 1953.

2.The General Clauses Act, 1897 (X of 1897) applies for the interpretation ofthis Order as it applies for the interpretation of a Central Act.

3.(1) For the purposes of clause (2) of article 270, two and three-quarters percent, of so much of the net proceeds of taxes on income as does not representthe net proceeds of taxes payable in respect of Union emoluments shall representthe proceeds attributable to C States for each financial year commencing on andafter the first day of April, 1952.

(2)The percentage of the net proceeds of the taxes on income, except in so far asthose proceeds represent proceeds, attributable to Part C States or to taxespayable in respect of Union emoluments, which is to be assigned to Part A Statesand Part B States (other/than the State of Jammu and Kashmir) under the saidclause in each of the financial years commencing on and after the first day ofApril, 1952; shall be 55 per cent.

(3)The percentage of the net proceeds of the taxes on income falling to bedistributed under clause (2) in each of the financial years commencing on andafter the first day of April, 1952, among the said States shall be :--

Providedthat if any Part B State is entitled to receive in any of the financial yearscommencing on and after the first day of April, 1952, any grant of financialassistance by the Government of India by virtue of an agreement under clause (1)of article 278, the State shall be entitled either to the amount of the saidgrant or to the total of the sums falling to its share out of the net proceedsof the taxes on. income under this Order and the net proceeds of the Unionduties of excise under the Union Duties of Excise (Distribution) Act, 1953,whichever is greater.

4.In accordance with the provisions of clause (1) of article 273, there shall becharged on the Consolidated Fund of India in each of the financial yearscommencing on and after the first day of April, 1952, as grants-in-aid of therevenues of each of the States specified below, in lieu of assignment of anyshare of the net proceeds in each year of export duty on jute and jute productsto those States, the sum specified against it :--

5.(1) In accordance with the provisions of clause (1) of article 275, thereshall be charged, on the Consolidated Fund of India--

(a)In each of the financial years commencing on and after the first day of April,1952, as grants-in-aid of the revenues of each of the States specified below thesum specified against it :

(b)In each of the financial years specified below, as grants-in-aid of the revenuesof each of the States so specified, for the expansion of primary education, thesum specified against it :

(2)Any sum or sums payable under this paragragh shall be in addition to any sum orsums payable to the State under each of the provisos to clause (1) of article275.

6.The Constitution (Distribution of Revenues) Orders, 1950¹ , 1951² and 1952³ are hereby repealed.

________________________

1.C.O. 12, supra.

2.C.O. 28, supra.

3.C.O. 40, supra.