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Consider the following

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?

(a)

Only two

(b)

Only three

(c)

only four

(d)

All five

Answer:

(b)

Explanation

The correct answer is (b). The Commission used the following criteria for horizontal tax devolution: Population: 15% weightage Area: 15% weightage Income distance: 45% weightage Demographic performance: 12.5% weightage Tax and fiscal efforts: 2.5% weightage