Which of the following statements with regard to recommendations of the 15th Finance Commission of India are correct? I. It has recommended grants of ₹ 4,800 crores from the year 2022-23 to the year 2025-26 for incentivizing States to enhance educational outcomes. II. 45% of the net proceeds of Union taxes are to be shared with States. III. ₹ 45,000 crores are to be kept as performance-based incentive for all States for carrying out agricultural reforms. IV. It reintroduced tax effort criteria to reward fiscal performance. Select the correct answer using the code given below.
- AI, II and III
- BI, II and IV
- CI, III and IVCorrect
- DII, III and IV
Explanation
Analyzing the 15th Finance Commission recommendations:
I. ₹4,800 crores grants for educational outcomes (2022-23 to 2025-26): Correct. The Commission recommended performance-based grants to incentivize states to improve educational outcomes.
II. 45% of net proceeds of Union taxes to be shared with States: Incorrect. The 15th Finance Commission recommended 41% share for states, not 45%. This was actually a reduction from the 14th Finance Commission's recommendation of 42%.
III. ₹45,000 crores for agricultural reforms performance incentive: Correct. The Commission allocated this amount as performance-based incentives for states undertaking agricultural and rural development reforms.
IV. Reintroduced tax effort criteria for fiscal performance: Correct. The Commission reintroduced tax effort as a criterion to reward states that make greater efforts in tax collection and fiscal management.
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