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.

Same topic · past papers

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These previous-year questions sit on the same topic. Open one to practise the earlier ask.

  1. 2025 · Q66 · General Studies · 2 marks

    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. It reintroduced tax effort criteria to reward fiscal performance. Select the correct answer using the code given below

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