UPSC Prelims Practice Questions — Sixteenth Finance Commission — misses and concerns

Question 1

Which one of the following is the nodal Department of the Union Government that processes the recommendations of the Sixteenth Finance Commission and operationalises the transfer of the States' share in the divisible pool?

Accepted Answer

Department of Expenditure, Ministry of Finance

Answer

Department of Revenue, Ministry of Finance

Answer

Department of Economic Affairs, Ministry of Finance

Answer

NITI Aayog

Question 2

Among the criteria adopted by the Sixteenth Finance Commission for inter-se distribution of the divisible pool among States, which one carries the highest weight?

Accepted Answer

Income Distance

Answer

Population (Census 2011)

Answer

Forest and Ecology

Answer

Contribution to GDP

Question 3

In the context of the Sixteenth Finance Commission's horizontal devolution formula, the term 'Income Distance' is most accurately defined as which one of the following?

Accepted Answer

The difference between a State's per capita GSDP and the average per capita GSDP of the three States with the highest per capita GSDP, averaged over selected reference years

Answer

The gap between a State's per capita GSDP and the national average per capita GSDP for the latest available year

Answer

The shortfall of a State's tax-to-GSDP ratio compared to the all-India tax-to-GSDP ratio

Answer

The deviation of a State's per capita income from the per capita income of the poorest large State

UPSC Prelims Practice Questions — Sixteenth Finance Commission — misses and concerns

Q1. Which one of the following is the nodal Department of the Union Government that processes the recommendations of the Sixteenth Finance Commission and operationalises the transfer of the States' share in the divisible pool?

Q2. Among the criteria adopted by the Sixteenth Finance Commission for inter-se distribution of the divisible pool among States, which one carries the highest weight?

Q3. In the context of the Sixteenth Finance Commission's horizontal devolution formula, the term 'Income Distance' is most accurately defined as which one of the following?