UPSC Prelims 2023 Question on – 15th Finance Commission Criteria
Q. Consider the following:
1. Demographic performance
2. Forest and ecology
3. Governance reforms
4. Stable government
5. Tax and fiscal efforts
For the horizontal tax devolution, the Fifteenth Finance Commission used how many of the above as criteria other than population, area and income distance?
✅ Correct Answer: [B] Only three
Explanation:
The 15th Finance Commission used the following criteria for horizontal tax devolution among states:
Income Distance – 45%
Population (2011 Census) – 15%
Area – 15%
Forest and Ecology – 10%
Demographic Performance – 12.5%
Tax and Fiscal Effort – 2.5%
Thus, among the given options, Demographic Performance, Forest and Ecology, and Tax and Fiscal Effort were used as criteria.
Governance Reforms and Stable Government were not used as criteria for horizontal devolution.
