UPSC Prelims Practice Questions — Reclaiming T.N.’s fiscal autonomy

Question 1

In the revised horizontal devolution formula recommended by the 16th Finance Commission (2026-31) for distributing the states' share among states, how many distinct criteria (parameters) are used?

Accepted Answer

Six

Answer

Five

Answer

Seven

Answer

Four

Question 2

In the context of Centre-State financial relations debated in Tamil Nadu's 2026 White Paper, the term 'vertical devolution' refers to which one of the following?

Accepted Answer

The share of the divisible pool of central taxes assigned by the Finance Commission to the states as a whole

Answer

The distribution of the states' aggregate share among individual states using a weighted formula

Answer

The grants-in-aid given by the Union to local bodies through the State governments

Answer

The transfer of centrally sponsored scheme funds from States to district and panchayat-level institutions

Question 3

In the horizontal devolution formula of the 16th Finance Commission (2026-31), which one of the following criteria carries the single largest weight?

Accepted Answer

Income distance

Answer

Population (2011 Census)

Answer

Contribution to GDP

Answer

Forest and ecology

UPSC Prelims Practice Questions — Reclaiming T.N.’s fiscal autonomy

Q1. In the revised horizontal devolution formula recommended by the 16th Finance Commission (2026-31) for distributing the states' share among states, how many distinct criteria (parameters) are used?

Q2. In the context of Centre-State financial relations debated in Tamil Nadu's 2026 White Paper, the term 'vertical devolution' refers to which one of the following?

Q3. In the horizontal devolution formula of the 16th Finance Commission (2026-31), which one of the following criteria carries the single largest weight?