UPSC PRELIMS · ECONOMICS · FISCAL FEDERALISM — FINANCE COMMISSION

Consider the following : 1. Demographic performance 2. Fore~t 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?

Take a breath. Choose one. Press A–D on your keyboard if you like.

EXPLANATION

The Fifteenth Finance Commission used demographic performance, forest and ecology, governance reforms and tax/fiscal efforts, in addition to area and income distance. Stable government was not one of the criteria. Hence four.

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