¹ THE CONSTITUTION (DISTRIBUTION OF REVENUES) ORDER, 1962

C.O. 63

In exercise of the powers conferred by articles 270 and 275 of the Constitution and of all other powers enabling him in that behalf, the President, after having considered the recommendations of the Finance Commission, hereby makes the following Order, namely:--

1. This Order may be called the Constitution (Distribution of Revenues) Order, 1962.

2. The General Clauses Act, 1897 (10 of 1897) applies for the interpretation of this Order as it applies for the interpretation of a Central Act,

3. (1) For the purposes of clause (2) of article 270, two-and-a-half per cent. of so much of the net proceeds of taxes on income as does not represent the net proceeds of taxes payable in respect of Union emoluments shall represent the proceeds attributable to Union territories for each financial year commencing on and after the first day of April, 1962.

(2) The percentage of the net proceeds of the taxes on income, except in so far as those proceeds represent proceeds attributable to Union territories or to taxes payable in respect of Union emoluments, which is to be assigned to the States under the said clause in each of the financial years commencing on and after the first day of April, 1962, shall be 66-2/3 per cent.; and the total amount to be so assigned shall be distributed among the States as follows:--

² [(3) There shall also be paid to the Slate of Nagaland during the financial year 1963-64, an amount equal to 0.03 per cent., and during each of the subsequent financial years an amount equal to 0.1 per cent., of the net proceeds of the taxes on income, except in so far as those proceeds represent proceeds attributable to Union territories or to taxes payable in respect of Union emoluments.]

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

(a) in each of the financial years commencing on and after the first day of April, 1962, as grants-in-aid of the revenues of each of the States specified below the sum specified against it:--

³ [(aa) a sum of Rs. 75 lakhs during the financial year 1963-64, Rs. 250 lakh during the financial year 1964-65 and Rs. 275 lakhs during the financial year 1965-66 as grant-in-aid of the revenues of the State of Nagaland;]

(b) in each of the financial years commencing on and after the first day of April, 1962, as grants-in-aid of the revenues of each of the States, specified below, for improvement of communications, the sum specified against it:--

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

5. The Constitution (Distribution of Revenues) No. 2 Order, 1957,⁴ shall, as from the 1st day of April, 1962 stand repealed.

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1. Published with the Ministry of lew (Legislative Department) Notification No.O.S.R. 373, dated the 19th March, 1962, Gazette of India, Extraordinary, 1962, Part D, section 3(i), page 153 repealed by C.O. 73, infra(w.e.f. 1-4-1966).

2. Inserted by the Ministry of Finance (Department of Economic Affairs) Order No.S.O. 726, dated the 26-2-1964, Gazette of India, Extraordinary, Part II, Section 3 (ii), page 195.

3. Inserted by the Ministryof Finance (Department of Economic Affairs) Order No.S.O. 726, dated 26-2-1964, Gazette of India, Extraordinary, Part II, Section 3(ii), page 195.

4. C.O.54, supra.