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What is Income distance in Finance Commission?

Income distance is the distance of the state’s income from the state with the highest income.  The income of a state has been computed as the average per capita GSDP (Gross State Domestic Product) during the three-year period between 2015-16 and 2017-18.  States with lower per capita income would be given a higher share to maintain equity among states.

Further Reading:

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