Which of the following statements with regard to recommendations of the 15th Finance Commission of India are…
Which of the following statements with regard to recommendations of the 15th Finance Commission of India are correct? I. It has recommended grants of USD 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. USD 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.
I, II and III
I, II and IV
I, III and IV
II, III and IV
Solution
15th FC recommended Rs 4,800 cr education incentives (I), Rs 45,000 cr agricultural performance incentive (III), and reintroduced tax-effort criteria (IV). Devolution is 41% of net Union taxes (not 45%), so II is wrong. Answer is I, III and IV. [Sources disagree: Insights IAS — C; Prepp — A. Going with C.]