The correct answer is (d) None of the above.
The 13th Finance Commission recommended that the states in the Indian Union should receive at least 32.0 percent of the central tax. However, the central government has not accepted this recommendation and has instead decided to give the states a share of 30.5 percent of the central tax.
The 13th Finance Commission was set up in 2010 to recommend the distribution of central taxes between the central government and the state governments for the period 2015-2020. The Commission recommended that the states should receive at least 32.0 percent of the central tax. This recommendation was based on the principle of fiscal federalism, which holds that the central government and the state governments should share the tax revenue in a way that is fair and equitable.
The central government has not accepted the 13th Finance Commission’s recommendation on the share of central tax that should be given to the states. Instead, the central government has decided to give the states a share of 30.5 percent of the central tax. This decision has been criticized by many, who argue that it is unfair to the states and that it will lead to a decline in the quality of public services in the states.
The central government’s decision to give the states a share of 30.5 percent of the central tax is likely to have a number of negative consequences. First, it will lead to a decline in the quality of public services in the states. Second, it will increase the fiscal deficit of the states. Third, it will lead to an increase in the debt burden of the states. Fourth, it will make it difficult for the states to invest in infrastructure and development.
The central government should reconsider its decision and accept the 13th Finance Commission’s recommendation on the share of central tax that should be given to the states. This would be fair and equitable to the states and would help to improve the quality of public services in the states.