Economics · Economy
What was the primary reason for reducing the state share in central taxes from 42% (under the 14th Finance Commission) to 41% under the 15th Finance Commission?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1To increase financial allocations to Panchayati Raj Institutions and Urban Local Bodies
- 2The reorganization and creation of the Union Territories of Jammu & Kashmir and Ladakh✓
- 3The introduction of tax effort performance as a new criterion for tax devolution
- 4The transition from the 1971 population baseline to the 2011 population baseline
Correct answer
The reorganization and creation of the Union Territories of Jammu & Kashmir and Ladakh
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