17 Questions
What is the main focus of the Finance Commission when recommending transfers?
State governments' needs
What does the net divisible pool (NDP) calculation exclude?
Cesses and surcharges
What was a significant change in the divisible pool post a constitutional amendment in 2000?
Inclusion of all taxes of the union
What was a key factor that influenced the formation of the Fifteenth Finance Commission?
Abolition of Planning Commission
How did the vertical devolution share recommended by the Fifteenth Finance Commission for 2021-26 compare to that recommended by the 14th Finance Commission for 2015-20?
It was lower
What is the main responsibility of the Finance Commission?
Evaluating the state of finances of the union and state governments
What does vertical equity refer to in the context of the Finance Commission's work?
Deciding about the share of all states in the revenue collected by the centre
How is income distance used in the distribution of central taxes among states for 2021-26?
To determine a state's income compared to the state with the highest income
Which commission recommended that the share of states in central taxes for 2021-26 should be 41%?
Fifteenth Finance Commission
What is the purpose of levying a cess on luxury goods and demerit goods?
Providing compensation to states
What does SGST stand for in relation to tax collection by states?
State Goods and Services Tax
What is the purpose of the Finance Commission as per the Indian Constitution?
To recommend sharing of taxes between the union and state governments
Which of the following statements about the Finance Commission is true?
It recommends grants-in-aid to states in need of assistance.
In what way does the Finance Commission contribute to maintaining fiscal federalism in India?
By recommending measures to augment the consolidated fund of a state.
What is one of the key functions of the Finance Commission?
Deciding on the distribution of net proceeds of taxes between union and states
Which body makes recommendations to the President on measures needed to augment a state's consolidated fund?
Finance Commission
How does the Finance Commission assist in distributing resources between the centre and states?
By recommending the sharing of taxes between the centre and states
Learn about the matters referred to the Finance Commission by the President in the interests of sound finance, including issues related to vertical and horizontal equity in revenue allocation among states. Explore how the Finance Commission assesses gross tax revenues and handles cesses, surcharges, and non-tax revenue.
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