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Which of the following criteria is NOT used by the Finance Commission to distribute funds among States?
- a)Population/Demography
- b)Historical tax collection rates
- c)Income Distance
- d)Area
Correct answer is option 'B'. Can you explain this answer?
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Which of the following criteria is NOT used by the Finance Commission ...
The Finance Commission employs several criteria for fund distribution among States, including population, demographic performance, income distance, and area. Historical tax collection rates are not included as a distribution criterion. This approach aims to address equity and ensure that States with greater needs receive appropriate funding, thus promoting balanced development across the country.
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Which of the following criteria is NOT used by the Finance Commission to distribute funds among States?a) Population/Demographyb) Historical tax collection ratesc) Income Distanced) AreaCorrect answer is option 'B'. Can you explain this answer?
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