New Delhi: The 12th Finance Commission on sharing of taxes between the Centre and States for 2005-10 today (Dec 17, 2004) submitted its report to President A P J Abdul Kalam, with its chairman C Rangarajan asserting that all the contentious issues of States have been addressed.

"We have addressed all the issues mentioned in the terms of reference -- tax devolution, grants, debt relief, flow of funds to urban and local bodies and calamity relief," Rangarajan told reporters after submitting the report.

He declined to go into specifics, but said the panel has "tilted" the balance towards grants so as to benefit smaller and less developed States whose share of tax revenue is lower.

At the same time, he said the complaints of better performing States of a relative lower share of revenue, have also been addressed.

The Commission has set milestones for both Centre and States in terms of restructuring of their financial position.

"There is a separate chapter on restructuring of public finances of both Centre and States," he added.