Q. 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. Its reintroduced tax effort criteria to reward fiscal performance.
Select the correct answer using the code given below.
Exp) Option c is the correct answer.
Statement I is correct: The 15th Finance Commission recommended grants of Rs. 4,800 crore (Rs. 1,200 crore each year) from 2022-23 to 2025-26 for incentivizing states to enhance educational outcomes.
Statement II is incorrect: The 15th Finance Commission recommended that 41% of the divisible pool of Central taxes be shared with the States for the period 2021-26. This is a 1% adjustment from the 42% recommended by the 14th Finance Commission, to account for the newly formed Union Territories of Jammu and Kashmir and Ladakh.
Statement III is correct: The 15th Finance Commission recommended Rs. 45,000 crore as a performance-based incentive for all states for carrying out agricultural reforms.
Statement IV is correct: The 15th Finance Commission reintroduced ‘Tax and Fiscal Efforts’ as a criterion for horizontal devolution with a weightage of 2.5%. This criterion aims to reward states with higher tax collection efficiency. This criterion was previously used by the 11th and 12th Finance Commissions.
Source: https://www.pib.gov.in/PressReleasePage.aspx?PRID=1693868
https://fincomindia.nic.in/asset/doc/commission-reports/XVFC-Complete-Report-1.pdf
Discover more from Free UPSC IAS Preparation Syllabus and Materials For Aspirants
Subscribe to get the latest posts sent to your email.
