Notable features of 13th Finance Commission recommendations — UPSC Prelims PYQ 2012
Which of the following is /are among the noticeable features of the recommendations of the Thirteenth Finance Commission?
- A design for the Goods and Services Tax, and a compensation package linked to adherence to the proposed design.
- A design for the creation of lakhs of jobs in the next ten years in consonance with India’s demographic dividend.
- Devolution of a specified share of central taxes to local bodies as grants.
Select the correct answer using the code given below:
- 1 only
- 2 and 3 only
- 1 and 3 only
- 1, 2 and 3
Explanation
Features 1 and 3 are correct
- The 13th Finance Commission, chaired by Dr. Vijay Kelkar, covered the period from 2010 to 2015.
- It made key recommendations including a framework for the implementation of the Goods and Services Tax (GST). It proposed a design for GST along with a compensation package for states adhering to the suggested model. Additionally, the commission emphasized strengthening local bodies by recommending a specified share of central taxes as grants to these institutions.
- There was no specific recommendation or framework aimed at creating “lakhs of jobs” based on the demographic dividend.
Answer: (c) 1 and 3 only; Difficulty Level: Medium
