¹ THECONSTITUTION (DISTRIBUTIONOF REVENUES)ORDER,1974

C.O.96

Inexercise of the powers conferred by articles 270and 275of the Constitution and of allother powers enablinghim in that behalf, thePresident, after having considered the recommendations of the FinanceCommission, hereby makes the followingOrder, namely:--

1.ThisOrder may be called theConstitution (Distribution of Revenues)Order, 1974.

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 270,1.79percent. 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 1stof April, 1974.

(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 Stateunder the said clause in each of the financial years commencing on and after the1stof April, 1974shall be eighty percent.; and the total amount to be so assignedshall be distributed among theStales as follows:--

² 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, 1974and 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:--

(Rupeesin crores)

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

(3)Of the grants-in-aid of the revenues payable to the State of Jammu and Kashmirand indicated under clause (1)of this paragraph, the following sumsshall represent grants-in-aidpayable for programmes of expenditures for strengthening and reorganisation ofthe police force in the State, in each of the years commencing from the 1stday of April, 1974:--

Provided,however, that if in any year the expenditure on programmes for strengthening andreorganisation of police force in the State is lower than the amount of grantspecified above, the grantshall be correspondingly reducedand carried over to thesubsequent year:

Providedfurther that the aggregate amount payable to the State of Jammu and Kashmir forthis purpose over the five-year period ending with the 31stday of March, 1979,shall be restricted to theactual amount spent or to a sum of rupees ten crores and fifty-five lakhs,whichever is less.

5.TheConstitution (Distribution of Revenues)Order,³ 1969,shall, as from the 1stday of April, 1974stand repealed.

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1.Published withthe Ministry of Law, Justice and CompanyAffairs (Legislative Department) NotificationNo. G.S.R.154(E),dated the 30thMarch, 1974,Gazette ofIndia, Extraordinary, 1974,Part II, Section 3(i),page 729.[Since repealed by C.O. 112,infra (w.e.f.1-4-1979)].

2.C.O. 107,infra.

3.C.O. 87,supra.