Q. Consider the following:
1.Population
2.Area
3.Income distance
4.Poverty level
5.Forest and ecology
6.Disaster vulnerability
How many of the above criteria were used by the Fifteenth Finance Commission when designing the tax transfer formula?
Answer: B
Notes:
Explanation – The Fifteenth Finance Commission used six criteria when designing the tax transfer formula. These criteria included: population (15%), area (15%), income distance (45%), demographic transition (12.5%), forest and ecology (10%) and tax effort (2.5%). The Fifteenth Finance Commission was constituted by the Government of India in November 2017 under the leadership of Nand Kishore Singh, with the objective of giving recommendations for devolution of taxes and other fiscal matters.
Source: The Hindu
