Consider the following:

1. Demographic performance
2. Forest and ecology
3. Governance reforms
4. Stable government
5. Tax and fiscal efforts

For the horizontal tax devolution, the Fifteenth Finance Commission used how many of the above as criteria other than population area and income distance?

1. Only two
2. Only three
3. Only four
4. All five

Explanation

Forest and ecology, Demographic performance and Tax and fiscal efforts are part of the criteria, other than population area and income distance, for the horizontal tax devolution

• The share of States from the divisible pool (vertical devolution) stands at 41% as per the recommendation of the 15^th FC. The distribution among the States (horizontal devolution) is based on various criteria. (See the figure below):

Answer: (b) Only three; Difficulty Level: Easy