Consider the following:
1. Demographic performance
2. Forest and ecology
3. Governance reforms
4. Stable government
5. Tax and fiscal efforts
For the horizontal tax devolution, the Fifteenth Finance Commission used how many of the above as criteria other than population area and income distance?

Only two

Only three

Only four

All five

APEDIA

UPSC Prelims

2023 • 28 May, 2023 • Paper-1

Consider the following:

1. Demographic performance
2. Forest and ecology
3. Governance reforms
4. Stable government
5. Tax and fiscal efforts

For the horizontal tax devolution, the Fifteenth Finance Commission used how many of the above as criteria other than population area and income distance?

Correct Answer

Only three

Subject: Polity.Context: Finance Commission Devolution Criteria.Details: The 15th Finance Commission recommended a formula for horizontal tax devolution. Apart ......

💡 Analysis & Explanation

Subject ▼

Polity.

Context ▼

Finance Commission Devolution Criteria.

Details ▼

The 15th Finance Commission recommended a formula for horizontal tax devolution. Apart from Population, Area, and Income Distance, it included 'Demographic performance' (12.5%), 'Forest and ecology' (10%), and 'Tax and fiscal efforts' (2.5%). 'Governance reforms' and 'Stable government' were not among the criteria used. Hence, only three apply.

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Consider the following:1. Demographic performance2. Forest and ecology3. Governance reforms4. Stable government5. Tax and fiscal effortsFor the horizontal tax devolution, the Fifteenth Finance Commission used how many of the above as criteria other than population area and income distance?

Consider the following:
1. Demographic performance
2. Forest and ecology
3. Governance reforms
4. Stable government
5. Tax and fiscal efforts
For the horizontal tax devolution, the Fifteenth Finance Commission used how many of the above as criteria other than population area and income distance?