Q76.
Which of the following statements with regard to recommendations of the 15th Finance Commission of India are correct? I. It has recommended grants of ₹ 4,800 crores from the year 2022-23 to the year 2025-26 for incentivizing States to enhance educational outcomes. II. 45% of the net proceeds of Union taxes are to be shared with States. III. ₹ 45,000 crores are to be kept as performance- based incentive for all States for carrying out agricultural reforms. IV. It reintroduced tax effort criteria to reward fiscal performance. Select the correct answer using the code given below.
Answer
C
Explanation
I is correct: XVFC has recommended grants of 4,800 crore (Rs. 1,200 crore each year) from 2022-23 2025-26 for incentivising the States to enhance outcomes. II is not correct: In order to maintain and stability of resources, especially the pandemic, XVFC has recommended the vertical devolution at 41 per cent – the as in our report for 2020-21. It is at the same level 42 per cent of the divisible pool as recommended by However, it has made the required adjustment about 1 per cent due to the changed status of the State of Jammu and Kashmir into the new Territories of Ladakh and Jammu and Kashmir. III is correct: XVFC has recommended that Rs. crore be kept as performance-based incentive all the States for carrying out agricultural reforms. IV is correct: XVFC has re-introduced tax criterion to reward fiscal performance.