Outline the ‘divisible pool method’ for fiscal adjustment.

Divisible Pool Method: As per this method, either a fixed percentage of net revenue from all the taxes or identified select taxes are pooled for the purpose of distribution across the federating states on the basis of a criterion. In view of this, this method of fiscal transfer is also known as distributive pool or shared tax revenue method. Certain issues like: (i) Which taxes are to be shared, (ii) What percentage of each of the pooled taxes should be shared, and (iii) How to distribute the pooled revenue across the competing states, etc. are decided separately. There is a uniform practice in all the countries with regard to _____ ___ __________ ____ ___ _______ _____ _______ __________ ________ ____.
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