If the Union's total revenue for the financial year is Rs. 30,00,000 crore and the latest Finance Commission recommends that 28% of this revenue should be allocated to the states, how much revenue (in crore rupees) will the states receive?
Answer
Rs. 8,40,000 crore
The correct answer is Rs. 8,40,000 crore — Thus the states receive 8,40,000 crore rupees.
Step-by-step solution
- Convert 28% to decimal: 28% = 0.28.
- Multiply the total revenue by 0.28: 30,00,000 × 0.28 = 8,40,000.
- Thus the states receive 8,40,000 crore rupees.
Common mistake: forgetting to convert percentage or mis‑multiplying
Concept tested: fiscal allocation formula
Published · How this solution was prepared and checked
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