Consider the following statements:
- 1. The 15th Finance Commission used fiscal effort as a criterion for horizontal devolution unlike the 14th Finance Commission.
- 2. Both the 14th and the 15th Finance Commission used pre-2011 demographic variables as a criteria for horizontal devolution.
Which of the statements given above is/are correct ?
1 only
2 only
Both 1 and 2
Neither 1 nor 2
Answer is Right!
Answer is Wrong!
This question was previously asked in
UPSC CAPF – 2024
Statement 2 is incorrect: The 14th Finance Commission used the 1971 population data (17.5% weightage) and Forest Cover (7.5% weightage). The 15th Finance Commission used the 2011 population data (15% weightage) and Demographic Performance based on TFR (12.5% weightage). Therefore, while the 14th FC used pre-2011 population data, the 15th FC shifted to using 2011 population data.
Since both statements are incorrect, option D is the correct answer.