Q. Which of the following statements with regard to recommendations of the 15th Finance Commission of India are correct?
✅ Correct Answer: C. I, III and IV
Explanation:
Statement I: 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 incentivising states to enhance educational outcomes.
Statement II: 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: The 15th Finance Commission recommended Rs. 45,000 crore as a performance-based incentive for all states for carrying out agricultural reforms.
Statement IV: 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.
