What is the percentage weightage assigned to Forest and Ecology in the

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What is the percentage weightage assigned to Forest and Ecology in the devolution formula given by the Fifteenth Finance Commission of India for sharing of Union tax revenue with the States ?

10%
15%
7.5%
2.5%
This question was previously asked in
UPSC CAPF – 2024
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The Fifteenth Finance Commission (15th FC) used several criteria for determining the share of individual states in the divisible pool of central taxes for the period 2021-26. The weightage assigned to ‘Forest and Ecology’ was 10%. This criterion was included to incentivize states to maintain and increase forest cover.
The 15th Finance Commission’s horizontal devolution formula included Population (2011), Area, Forest and Ecology, Income Distance, Demographic Performance, and Tax and Fiscal Effort.
The 14th Finance Commission also used ‘Forest Cover’ as a criterion with a 7.5% weightage. The 15th FC increased this weightage to 10% and broadened the term to ‘Forest and Ecology’, reflecting an increased emphasis on environmental factors in resource devolution.

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