New Delhi: The Fifth Finance Commission headed by Mahavir Tyagi is understood to have recommended in its interim report procedures to tackle the problem of unauthorised overdrafts of States with the Reserve Bank. The interim report, which mainly deals with the State-wise percentage distribution of the divisible pool of Central taxes and levies for 1969/70, is being submitted to the the President, Dr. Zakir Husain tomorrow.
The commission is also believed to have recommended certain changes in the principles governing the distribution among the States of the net proceeds of estate duty and of the grant made to the States in lieu of the repealed tax on railway passenger fares.
The Commission’s recommendations in respect of devolution of resources from the Centre to the States inclusive of grants-in-aid during 1969/70 will be taken into account.
