UPSC Prelims Practice Questions — No reduction in States’ share in tax devolution, FM asserts in Lok Sabha

Question 1

In the context of Union-State tax devolution in India, the term 'divisible pool' refers to which one of the following?

Accepted Answer

The net proceeds of Union taxes shareable with the States after deducting cost of collection, surcharges and cesses levied for specific purposes

Answer

The total gross tax revenue collected by the Union Government, including all cesses and surcharges, before any deduction

Answer

The corpus of grants-in-aid extended to needy States out of the Consolidated Fund of India under Article 275

Answer

The combined balances of the Consolidated Funds of the Union and the States set apart for inter-governmental transfers

Question 2

Under which one of the following Articles of the Constitution of India is the report of the Finance Commission, along with an explanatory memorandum on the action taken on its recommendations, mandatorily laid before each House of Parliament?

Accepted Answer

Article 281

Answer

Article 280

Answer

Article 270

Answer

Article 275

Question 3

As per the Union Budget 2026-27 presented in Parliament, what is the Budget Estimate of tax devolution to the States?

Accepted Answer

₹15.26 lakh crore

Answer

₹11.21 lakh crore

Answer

₹13.93 lakh crore

Answer

₹25.44 lakh crore

UPSC Prelims Practice Questions — No reduction in States’ share in tax devolution, FM asserts in Lok Sabha

Q1. In the context of Union-State tax devolution in India, the term 'divisible pool' refers to which one of the following?

Q2. Under which one of the following Articles of the Constitution of India is the report of the Finance Commission, along with an explanatory memorandum on the action taken on its recommendations, mandatorily laid before each House of Parliament?

Q3. As per the Union Budget 2026-27 presented in Parliament, what is the Budget Estimate of tax devolution to the States?