Official Answer Key & Detailed Solution
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Correct Answer: Option (B) — Only three
Concept & Option Breakdown
Standard Reference VerifiedThe 15th Finance Commission used the following six criteria with assigned weights for horizontal tax devolution:
- Income Distance (45%)
- Population (15% - 2011 census)
- Area (15%)
- Forest and Ecology (10%) (Item 2)
- Demographic Performance (12.5%) (Item 1)
- Tax and Fiscal Efforts (2.5%) (Item 5) Governance reforms and stable government were not used as devolution criteria. Hence, exactly three of the listed criteria (Demographic performance, Forest and ecology, Tax and fiscal efforts) were used.
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