Consider the following: 1. Demographic performance 2. Forest and ecology 3. Governance reforms 4. Stable government 5. Tax and fiscal efforts For the horizontal tax devolution, the Fifteenth Finance Commission used how many of the above as criteria other than population, area and income distance?
Explanation
The Fifteenth Finance Commission (XVFC) recommended the following criteria and weights for horizontal tax devolution among states for the 2021-26 period:
1. Income Distance (45%): The distance of a state's income from the state with the highest income. 2. Population (15%): Based on the 2011 Census data. 3. Area (15%): To account for the higher cost of providing services in larger geographical areas. 4. Forest and Ecology (10%): Calculated based on the share of the dense forest of each state in the total dense forest of all states. 5. Demographic Performance (12.5%): This criterion was introduced to reward states that have made progress in lowering their fertility rates (using 1971 population data as a benchmark). 6. Tax and Fiscal Efforts (2.5%): To reward states with higher tax collection efficiency.
Analysis of the given list: - Demographic performance: Included (Criterion 5) - Forest and ecology: Included (Criterion 4) - Tax and fiscal efforts: Included (Criterion 6) - Governance reforms: Not included as a criterion for horizontal devolution. - Stable government: Not included as a criterion for horizontal devolution.
Apart from population, area, and income distance, the Commission used three criteria from the list provided (Demographic performance, Forest and ecology, and Tax and fiscal efforts).