Arrange the following norms of tax revenue devolution formula of the Fifteenth Finance Commission in…
The Fifteenth Finance Commission (award period 2021-26) gave these weights for sharing central taxes among the states: income distance 45%, area 15%, demographic performance…
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Arrange the following norms of tax revenue devolution formula of the Fifteenth Finance Commission in order of their weightages starting from the highest:
(A) Income distance
(B) Area
(C) Demographic performance
(D) Forest and Ecology
(E) Tax effort
Answer and explanation
Correct answer A
The Fifteenth Finance Commission (award period 2021-26) gave these weights for sharing central taxes among the states: income distance 45%, area 15%, demographic performance 12.5%, forest and ecology 10%, and tax and fiscal efforts 2.5%. In descending order this is A, B, C, D, E. Population, also weighted at 15%, is not in the list.
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UGC NET Economics