The states are dying (3) - Vanguard News

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Raisman created the Distributable Pool Account to facilitate the sharing of some federally collected revenues among the Regions

. Each major revenue head was divided into a portion to be paid to the Regions on the basis of derivation, a portion to the Federal Government and a portion to be paid into the distributable pool for sharing among all the Regions on a set of principles.

For the allocation to the Regions out of the total revenue there were clearly two principles: derivation and need. But need was reflected by population, by requirements for continuity in government services, for minimum responsibilities of government , and for balanced development. The Binns Commission was appointed under Section 164 of the 1963 Republican Constitution. Its terms of reference were, among others, to review and make recommendations with respect to the allocation of mining rents and royalties and the distribution of funds in the Distributable Pool Account among the regions. Binns, therefore, focused on the distributable pool account.

Within a year of the Binns Report, the military intervention in Government in 1966 changed the political environment. In 1967, twelve states were created out of the former four Regions; the immediate problem was, therefore, how to share the Distributable Pool Account among the 12 states.

 

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