4. The fifteenth Finance Commission has
reduced the vertical devolution from
42% to 41%. Which among the following
parameters was not considered in
taking the decision ?
(1) Forest Cover
(2) Area of the State
(3) Income Tax collected by the State
(4) Demographic Performance
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The fifteenth Finance Commission has reduced the vertical devolution from 42% to 41%. Because Number o f states reduced from 29 to 28
Step-by-step explanation:
State Jammu and Kashmir split into two Union territories.
Hence number of state Decreased from 29 to 28
Jammu and Kashmir’s share, which was 1.854% in a total of 100%,
It amounts to close to 0.8% out of 42%.
Rounding of 0.8 to 1
Hence 42 % reduced to 41 %
Marginally favoring central
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