Q. Consider the following statements with regard to the 15th Finance Commission:
1. The Finance Commission is a temporary quasi-judicial body.
2. The share of states in the Centre’s divisible pool of taxes has decreased.
3. It introduced demographic performance as new criteria for devolution of funds to the states.
How many statements given above are correct?
Answer: C
Notes:
Exp) Option c is the correct answer.
Statement 1 is correct: Article 280 provides for a Finance Commission as a quasi-judicial body. It is constituted by the President every fifth year or even earlier. So, it is a temporary body.
Statement 2 is correct: The share of states in the Centre’s taxes is recommended to be decreased from 42% during the 2015-20 period to 41% for 2020-21. The 1% decrease is to provide for the newly formed union territories of Jammu and Kashmir, and Ladakh from the resources of the central government.
Statement 3 is correct: The Demographic Performance criterion has been introduced to reward efforts made by states in controlling their population.
