Consider the following:Demographic performanceForest and ecologyGovernance reformsStable governmentT

Q: What is UPSC Prelims?

UPSC Prelims is a competitive examination conducted in India. This question is from the 2023 UPSC Prelims Economy paper.

Q: How can I prepare for UPSC Prelims Economy?

To prepare for UPSC Prelims Economy, practice previous year questions (PYQs), understand concepts thoroughly, and solve mock tests regularly. This 2023 question covers Poverty, Unemployment & Social Inequality topic.

Q: What is the difficulty level of this question?

This UPSC Prelims 2023 Economy question has a easy difficulty level and is marked as an important question.

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You can find more UPSC Prelims previous year questions on AspirantMitraa. Browse by subject, topic, year, and difficulty level to practice effectively.

Question

Consider the following:Demographic performanceForest and ecologyGovernance reformsStable governmentTax and fiscal effortsFor the horizontal tax devolution, the Fifteenth Finance Commission used how many of the above as criteria other than population area and income distance?

Accepted Answer

Correct Answer: B — Only three (Forest & ecology, Tax & fiscal efforts, Demographic performance)Step-by-step Solution:XV Finance Commission’s horizontal devolution formula (excluding population, area, income distance):Forest & ecology – weight 10%Tax & fiscal efforts – weight 2.5%Demographic performance – weight 12.5%Governance reforms and stable government were not used as separate criteria.Why other options are incorrect:Option A (Only two): Three criteria were used.Option C (Only four): Only three of the listed five are used.Option D (All five): Governance reforms and stable government are not part of the FC devolution formula.Key Concept: The Fifteenth FC used six criteria: population (15%), area (15%), forest & ecology (10%), income distance (45%), tax effort (2.5%), demographic performance (12.5%). Demographic performance rewards states that have controlled population growth.

Consider the following:Demographic performanceForest and ecologyGovernance reformsStable governmentTax and fiscal effortsFor the horizontal tax devolution, the Fifteenth Finance Commission used how many of the above as criteria other than population area and income distance?

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Consider the following:Demographic performanceForest and ecologyGovernance reformsStable governmentTax and fiscal effortsFor the horizontal tax devolution, the Fifteenth Finance Commission used how many of the above as criteria other than population area and income distance?

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