UPSC Previous Year Question | Prelims GS | 2023

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?

  1. Only two
  2. Only three
  3. Only four
  4. All five

Answer

Correct Answer

Only three

Explanation

The 15th Finance Commission's horizontal devolution criteria (besides population, area, and income distance) included Demographic Performance, Forest and Ecology, and Tax and Fiscal Efforts—'Governance reforms' and 'Stable government' were not among the formal criteria.

Topics: economy, finance commission, fiscal federalism, horizontal tax devolution