The Union's total revenue for the financial year is Rs. 20,00,000 crore. According to the latest Finance Commission, 32% of the revenue is to be allocated to the states. How much revenue (in crore rupees) will the states receive?

Step-by-step solution

1. Write the total revenue: Rs. 20,00,000 crore.
2. The percentage allotted to states = 32%.
3. Convert the percentage to a decimal: 32% = 0.32.
4. Multiply the total revenue by 0.32: 20,00,000 $\times$ 0.32 = 6,40,000.
5. Thus the states receive Rs. 6,40,000 crore.
6. Round off is not required as the result is exact.

Concept tested: Fiscal federalism calculation

Published 21 August 2026 · Last updated 16 September 2026 · How this solution was prepared and checked

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