Question 76
Set 2
Contents
QQuestion
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.
OOptions
✓Correct Answer
DDalvoy Solutions
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.
SUPSC Prelims Strategy and Tips
For Finance Commission recommendations, pay attention to specific percentages and amounts. The devolution percentage is often a key point of debate and changes between commissions.