MCQ
Q.
Who is the Chairman of the 15th Finance Commission?
Correct Answer: A
The correct answer is N. K. Singh.
- N. K. Singh is the Chairman of the 15th Finance Commission.
Additional Information
- 15th Finance Commission
- The Finance Commission (FC) is a constitutional body, that determines the method and formula for distributing the tax proceeds between the Centre and states, and among the states as per the constitutional arrangement and present requirements.
- Under Article 280 of the Constitution, the President of India is required to constitute a Finance Commission at an interval of five years or earlier.
- The 15th Finance Commission was constituted by the President of India, under the chairmanship of NK Singh.
- Its recommendations will cover a period of five years from the year 2021-22 to 2025-26.
- Grants Devolution Criteria
- Population:
- The population of a State represents the needs of the State to undertake expenditure for providing services to its residents.
- It is also a simple and transparent indicator that has a significant equalising impact.
- Area:
- The larger the area, the greater is the expenditure requirement for providing comparable services.
- Forest and Ecology:
- By taking into account the share of the dense forest of each state in the aggregate dense forest of all the states, the share on these criteria is determined.
- Income Distance:
- Income distance is the distance of the Gross State Domestic Product (GSDP) of a particular state from the state with the highest GSDP.
- To maintain interstate equity, the states with lower per capita income would be given a higher share.
- Demographic Performance:
- It rewards efforts made by states in controlling their population.
- This criterion has been computed by using the reciprocal of the total fertility ratio of each state, scaled by 1971 population data.
- Tax Effort:
- This criterion has been used to reward states with higher tax collection efficiency.
- Population:
