Which body, set up every five years, decides on the sharing of tax re…

NCERT (2026-27): “6.2 Regionalism in the Indian Context …
Respecting regional sentiments is not just a matter of creating States: this has to be backed up with an institutional structure that ensures their viability as relatively autonomous units within a larger federal structure. In India this is done by Constitutional provisions defining the powers of the States and the Centre. There are lists of ‘subjects’ or areas of governance which are the exclusive responsibility of either State or Centre, along with a ‘Concurrent List’ of areas where both are allowed to operate. The State legislatures determine the composition of the upper house of Parliament, the Rajya Sabha. In addition there are periodic committees and commissions that decide on Centre-State relations. An example is the Finance Commission which is set up every five years to decide on sharing of tax revenues between Centre and States. Upto 2017, each Five Year Plan also involved detailed State Plans prepared by the State Planning Commissions of each state. The Goods and Services Tax (GST) Council includes State members.”