How are revenues distributed between the Union and the States?
Revenues are distributed between the Union and the States based on various factors such as taxes, duties, and other levies. In some cases, certain duties are levied by the Union (i.e., the Government of India) but collected and appropriated by the States. The proceeds of these duties in any financial year are assigned to the respective State where they are leviable and do not form part of the Consolidated Fund of India.