gs1medium

Consider the following :

  1. 1.Demographic performance
  2. 2.Forest and ecology
  3. 3.Governance reforms
  4. 4.Stable government
  5. 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?
  1. A.Only two
  2. B.Only three
  3. C.Only four
  4. D.All five
▶ Answer & Explanation

Correct answer: B. Only three

The Fifteenth Finance Commission, while determining the vertical and horizontal distribution of taxes, considered several criteria. For horizontal devolution, the weightage was given to the 2011 population, demographic performance, forest and ecology, income distance, and tax and fiscal efforts. Demographic performance was introduced to incentivize states to achieve higher levels of population control.

Source: UPSC gs1 2023

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