Q. Consider the following pairs:
Commission                                                                                                  Recommendation:
1. 13th Finance Commission                                                                      Provided a design for the GST and a compensation package
2. 14th Finance Commission                                                                      Distribution of grants to States for local bodies using 2011 population data
3. 15th Finance Commission                                                                      Provision of grants for disaster management
How many pairs given above are correctly matched?

[A] Only one

[B] Only two

[C] All three

[D] None

Answer: C
Notes:

Exp) Option c is the correct answer

Pair 1 is correctly matched. The noticeable features of the Thirteenth Finance Commission recommendations are as follows.

(1) Enhancing the vertical share of tax devolution from 30.5% to 32%.

(2) A design for the GST and a compensation package linked to adherence to the proposed design.

(3) A revised road map for fiscal consolidation and ensuring compliance to it by linking it to transfers.

(4) Devolution of a specified share of central taxes to local bodies as grants.

(5) A large number of specific-purpose grants to address the issues defined in the ToR such as climate change, sustainable development, and improving the output and outcome of government expenditure.

Pair 2 is correctly matched. The Fourteenth commission recommends to increase the tax devolution of the divisible pool to states to 42% for years 2015 to 2020. It has recommended distribution of grants to States for local bodies using 2011 population data with weight of 90 per cent and area with weight of 10 per cent

Pair 3 is correctly matched. The fifteenth finance commission recommended a total grant of Rs 10,33,062 crore during 2021-26, broadly characterised into: (a) revenue deficit grants, (b) grants for local governments, (c) grants for disaster management, (d) sector-specific grants and (e) state-specific grant

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