UPSC Prelims 2025 · Question 76 of 100
UPSC Prelims 2025 question on Fifteenth Finance Commission
- ExamUPSC CSE
- Year2025
- PaperGeneral Studies Paper I
- SubjectIndian Economy
- TopicPublic Finance
- DifficultyHard
- TypeStatement
Which of the following statements with regard to recommendations of the 15th Finance Commission of India are correct?
I. It has recommended grants of Rs.4,800 crores from the year 2022-23 to the year 2025-26 for incentivizing States to enhance educational outcomes.
II. 45% of the net proceeds of Union taxes are to be shared with States.
III. Rs.45,000 crores are to be kept as performance-based incentive for all the States for carrying out agricultural reforms.
IV. It reintroduced tax effort criterion to reward fiscal performance.
Select the correct answer code given below.
Show answer
Answer: C. I, III and IV
Verdict
Correct statements: I, III and IV → Option (c).
Statement by statement
Statement I – CORRECT: XVFC recommended grants for educational outcomes.
Statement II – INCORRECT: Share of divisible pool recommended was 41%, not 45%.
Statement III – CORRECT: Rs.45,000 crores recommended for agricultural reforms.
Statement IV – CORRECT: Tax effort criterion was reintroduced.