UPSC Prelims Practice Questions — ‘Double engine’ — cute slogan, a serious federal question

Question 1

In the context of the horizontal devolution formula adopted by the Sixteenth Finance Commission, the criterion 'Income Distance' refers to which one of the following?

Accepted Answer

The gap between a State's per capita income and that of the State with the highest per capita income

Answer

The absolute difference between the Centre's gross tax revenue and the State's own tax revenue

Answer

The deviation of a State's GSDP growth rate from the national average GDP growth rate

Answer

The ratio of a State's fiscal deficit to its Gross State Domestic Product

Question 2

With reference to the Sixteenth Finance Commission as compared to the Fifteenth Finance Commission, consider the following statements: 
1. The vertical share of States in the divisible pool of central taxes recommended by the Sixteenth Finance Commission is the same as that recommended by the Fifteenth. 
2. The Sixteenth Finance Commission has introduced 'Contribution to GDP' as a new horizontal devolution criterion, replacing 'Tax and Fiscal Effort'. 
3. The Sixteenth Finance Commission has increased the weight assigned to 'Income Distance' compared to the Fifteenth Finance Commission. 
Which of the statements given above is/are correct?

Accepted Answer

1 and 2 only

Answer

2 and 3 only

Answer

1 and 3 only

Answer

1, 2 and 3

Question 3

Among the criteria adopted by the Sixteenth Finance Commission for horizontal devolution of central taxes among the States, which one carries the highest weightage?

Accepted Answer

Income Distance

Answer

Population (Census 2011)

Answer

Contribution to GDP

Answer

Forest and Ecology

Question 4

The Sixteenth Finance Commission, which submitted its report for the period 2026-31, was constituted by the President of India under which one of the following Articles of the Constitution?

Accepted Answer

Article 280

Answer

Article 270

Answer

Article 275

Answer

Article 293

UPSC Prelims Practice Questions — ‘Double engine’ — cute slogan, a serious federal question

Q1. In the context of the horizontal devolution formula adopted by the Sixteenth Finance Commission, the criterion 'Income Distance' refers to which one of the following?

Q3. Among the criteria adopted by the Sixteenth Finance Commission for horizontal devolution of central taxes among the States, which one carries the highest weightage?

Q4. The Sixteenth Finance Commission, which submitted its report for the period 2026-31, was constituted by the President of India under which one of the following Articles of the Constitution?