Question

Q. Which among the following are the criteria under which the 15^th Finance Commission (FC) made recommendations for the distribution of net proceeds?

Choose the correct option from the codes given below:

• A.
  1 and 2 only
• B.
  2 and 4 only
• C.
  1 and 3 only
• D.
  1, 2, 3 and 4

Answer 1

The correct option is D

1, 2, 3 and 4
Explanation: Following criteria have been used by the 15th Finance Commission (FC) for devising the formula for devolution of funds, they include:

1. Income Distance (45$\%$)
2. Population (2011-15$\%)$
3. Area (15$\%)$
4. Forest and Ecology (10$\%)$
5. Demographic Performance (12.5$\%)$
6. Tax Effort (2.5$\%)$