GK
BANKING AWARENESS AND SEBI
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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41 %
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42 %
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43 %
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44 %
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Detailed explanation-1: -Devolution of taxes to states: Tax devolution should be the primary source of transfer of funds to states. The share of taxes of the centre to states is recommended to be increased from 32% to 42%.
Detailed explanation-2: -The 14th FC has recommended a grant-in aid for local governments that is equal to an estimated 3% of the divisible pool. This is higher than the recommended allocation of 2.5% by the 13th FC. grants and conditional performance grants was meant to incentivise the “laggards”.
Detailed explanation-3: -The Fourteenth Finance Commission had radically enhanced the share of the states in the central divisible pool from 32% to 42% which is the biggest ever increase in vertical tax devolution.
Detailed explanation-4: -The Finance Commission is constituted by the President under article 280 of the Constitution, mainly to give its recommendations on distribution of tax revenues between the Union and the States and amongst the States themselves.