New Delhi, March 3: The action taken report of the 12th Finance Commission include the acceptance by the government of the devolution of share in central taxes and duties to states.

Under Article 270 of the Constitution, a prescribed percentage of the net proceeds of all Central taxes is to be assigned to the states within which that tax is leviable in that year and distributed among those states in terms of orders issued by the President on the recommendations of the Finance Commission.

The government has also accepted the recommendation of the commission for the grants-in-aid to be given under Article 275(1) of the Constitution, other than those under the proviso to Article 275(1), equal to the amount of deficits assessed for each year during the period 2005-10.