States and Union Territories will get a higher 10 per cent funding from the Centre during the next financial year at Rs 1,26,623 crore (Rs 1,266 billion) mainly due to over 13 per cent surge in states' share of taxes and duties.

The rise in net resource transfer from the Centre in 2003-04, as compared to the revised estimate of Rs 1,14,614 crore (Rs 1,146.14 billion) in this year, was also due to over nine per cent rise in grants and loans, the Union Budget for 2003-04 said.

Out of the total net resource transfer, the states would get Rs 1,25,326 crore (Rs 1,253.26 billion) and UTs would get Rs 1297 crore (Rs 12.97 billion).

This is exclusive of the states's share in small savings collections.

During 2003-04, the states' share of taxes and duties is estimated to be Rs 63,758 crore (Rs 637.58 billion), up by 13.5 per cent from the revised estimate of Rs 56,141 crore (Rs 561.41 billion), and the total grants and loans to the states and UTs were pegged at Rs 76,353 crore (Rs 763.53 billion) as compared to revised figure of Rs 69,852 crore (Rs 698.52 billion) in 2002-03.

The Union government expects to recover advances to the tune of Rs 13,488 crore (Rs 134.88 billion) during the next financial year as compared to the revised estimate of Rs 11,379 crore (Rs 11,379 billion) in this year.

PTI