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Question

Q. Which among the following are the criteria under which the 15th 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
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B

2 and 4 only
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C

1 and 3 only
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D

1, 2, 3 and 4
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Solution

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 (201115%)
  3. Area (15%)
  4. Forest and Ecology (10%)
  5. Demographic Performance (12.5%)
  6. Tax Effort (2.5%)

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