2017 · Q84
Which one of the following criteria got the highest weight for determination of shares of States in the formula given by the 14th Finance Commission ?
General KnowledgeIndian Economy
- APopulation
- BIncome distance
- CArea
- DTax effort
Explanation
In the 14th Finance Commission's formula for horizontal devolution, 'income distance' — a State's per-capita income distance from the highest-income State — carried a 50% weight, the highest of all criteria. Population (1971 census) received only 17.5%, area 15%, demographic change 10% and forest cover 7.5%. Income distance, not population, therefore had the highest weight.