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With reference to the 15th Finance Commission, consider the following statements:


1. The 15th Finance Commission proposed maintaining the states' share in central taxes at 42% for the 2021-26 period.


2. Population (2011)' and 'Tax and fiscal efforts' were introduced by the 15th Finance Commission.


3. The Commission recommended that the Centre aims to limit its fiscal deficit to 4% of GDP by 2025-26.


How many of the above statements are correct?

  • a)
    Only two

  • b)
    Only one

  • c)
    All three

  • d)
    None

Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
With reference to the 15th Finance Commission, consider the following ...
  • The Finance Commission in India is a constitutional body established under Article 280 of the Indian Constitution. The Fifteenth Finance Commission was constituted on 27th November, 2017. It made recommendations covering the period of six years commencing on 1st April, 2020 through its Interim and Final Reports. The Commission proposed maintaining the states' share in central taxes at 41% for the 2021-26 period, a slight reduction from the 42% allocated during 2015-20 by the 14th Finance Commission. Hence, statement 1 is not correct.
  • Population (1971)' was considered only for the 14th Finance Commission, while 'Population (2011)' and 'Tax and fiscal efforts' were introduced by the 15th Finance Commission. Hence, statement 2 is correct.
  • The Commission recommended that the Centre aims to limit its fiscal deficit to 4% of GDP by 2025-26. Hence, statement 3 is correct
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Community Answer
With reference to the 15th Finance Commission, consider the following ...
Correct Answer: Only one

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Explanation:

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1. The 15th Finance Commission proposed maintaining the states share in central taxes at 42% for the 2021-26 period:
- This statement is correct. The 15th Finance Commission recommended maintaining the states' share in central taxes at 42% for the period 2021-2026. This decision was taken to ensure a stable flow of resources to the states.

2. Population (2011) and Tax and fiscal efforts were introduced by the 15th Finance Commission:
- This statement is incorrect. The 15th Finance Commission introduced the use of the 2011 population data for determining the distribution of central taxes among states. It also considered Tax and fiscal efforts of states, but these were not newly introduced by the commission.

3. The Commission recommended that the Centre aims to limit its fiscal deficit to 4% of GDP by 2025-26:
- This statement is not accurate. The 15th Finance Commission did not recommend a specific target for limiting the Centre's fiscal deficit to 4% of GDP by 2025-26. This target is typically set by the government based on its fiscal policy objectives.

Therefore, only the first statement is correct, making the correct answer option Only one.

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This explanation clarifies the accuracy of each statement related to the 15th Finance Commission and provides a clear understanding of the correct answer.
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With reference to the 15th Finance Commission, consider the following statements:1. The 15th Finance Commission proposed maintaining the states share in central taxes at 42% for the 2021-26 period.2. Population (2011) and Tax and fiscal efforts were introduced by the 15th Finance Commission.3. The Commission recommended that the Centre aims to limit its fiscal deficit to 4% of GDP by 2025-26.How many of the above statements are correct?a)Only twob)Only onec)All threed)NoneCorrect answer is option 'A'. Can you explain this answer?
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