Question
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?
Correct Answer — B
Explanation
The 15th Finance Commission’s devolution formula added Demographic Performance (12.5%), Forest & Ecology (10%), and Tax & Fiscal Efforts (2.5%) as criteria — ‘governance reforms’ and ‘stable government’ were not part of its weighting scheme.