15th Finance Commission criteria for horizontal tax devolution beyond population, area, income distance
Question
Consider the following: For the horizontal tax devolution, the Fifteenth Finance Commission used how many of the above as criteria other than population area and income distance?
- 1.
Demographic performance
- 2.
Forest and ecology
- 3.
Governance reforms
- 4.
Stable government
- 5.
Tax and fiscal efforts
Options
Only two
Only three
Only four
All five
Explanation
The 15th Finance Commission used exactly six criteria for horizontal devolution: Population, Area, Income Distance, Demographic Performance (12.5%), Forest and Ecology (10%), and Tax and Fiscal Efforts (2.5%). It did not use subjective political metrics like "Governance reforms" or "Stable government".
Answer: (b).
Question details
Year
2023
Paper
GS Paper 1
Question
Q29
Subject
Polity
Sub-topic
Federalism & Centre-State
Type
How-many counting
Difficulty
Hard
Nature
Current-affairs-linked
Source hint
15th Finance Commission Horizontal Devolution Report
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