Q49.
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?
Answer
B
Explanation
on principles of need, equity and performance, devolution formula is as follows. Weight(%) Population - 15.0 Area - 15.0 Forest & ecology - 10 Income distance - 45 Tax & fiscal efforts - 2.5 Demographic performance - 12.5 horizontal devolution, while XVFC agreed that the 2011 population data better represents the need of States, to be fair to, as well as reward, States which have done better on the demographic XVFC has assigned a 12.5 per cent weight to the performance criterion. XVFC has re- tax effort criterion to reward fiscal