Question
Consider the following statements regarding the Fifteenth Finance Commission (FFC) recommendations:
Select the correct answer using the code given below:
- For horizontal devolution, the population of the 2011 Census will be considered
- There are six parameters for horizontal devolution out of which ‘Tax Effort’ is one
Select the correct answer using the code given below:
Answer: Option B
Answer: (b)
The parameters for the distribution of taxes among the states (horizontal distribution) for FFC are
Income Distance (45%),
Population (2011 Census) (15%),
Demographic Performance (12.5%),
State Area (15%),
Forest Cover (10%),
Tax effort (2.5%).
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Answer: (b)
The parameters for the distribution of taxes among the states (horizontal distribution) for FFC are
Income Distance (45%),
Population (2011 Census) (15%),
Demographic Performance (12.5%),
State Area (15%),
Forest Cover (10%),
Tax effort (2.5%).
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