Q29 · UPSC Prelims 2023 · Set A · Polity and Governance

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Consider the following:1.Demographic performance2.Forest and ecology3.Governance reforms4.Stable government5.Tax and fiscal efforts For the horizontal tax devolution, the Fifteenth Finance Commission usedhow many of the above as criteria other than population area and income distance?

A Only two
B Only three
C Only four
D All five

Correct answer: (b) Only three

Explanation

  1. A

    Only two

    Only two. The 15th FC used three extra criteria besides population, area and income distance.

  2. B

    Only three

    Only three. Demographic performance, forest & ecology, and tax & fiscal efforts. Not governance reforms, not stable government.

  3. C

    Only four

    Only four. Governance reforms and stable government were not 15th FC horizontal criteria.

  4. D

    All five

    All five. Two of the five names are not in the formula.

Summary. Official key is (b) only three. For horizontal devolution the 15th Finance Commission used population, area, forest & ecology, income distance, demographic performance and tax & fiscal effort. Governance reforms and ‘stable government’ were not criteria.

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