2018 · Q53
The Fourteenth Finance Commission assigned different weights to the following parameters for distribution of tax proceeds to the States :
- 1Income distance
- 2Population
- 3Demographic changes
- 4Area Arrange the aforesaid parameters in descending order in terms of their weights.
General KnowledgeIndian Economy
- A1–2–3–4
- B1–2–4–3
- C1–3–2–4
- D4–3–2–1
Explanation
The Fourteenth Finance Commission assigned these weights for horizontal devolution: income distance 50%, population (1971) 17.5%, area 15%, and demographic change 10% (forest cover carried 7.5%). In descending order this is income distance (1), population (2), area (4), demographic change (3). The sequence 1-2-4-3 therefore matches the second option.