Current Affairs · 16th Finance Commission
Which of the following statements correctly identify the policy rationale and structural objectives driving the 16th Finance Commission's recommendations? 1. The introduction of the 'Contribution to GDP' criterion incorporates economic performance into fiscal devolution alongside equity criteria. 2. Under the chairmanship of Arvind Panagariya, the Commission explicitly emphasized recognizing India's growth ambition while balancing equity to avoid severe redistribution shocks. 3. The income distance parameter has been completely abolished in the 16th Finance Commission framework to focus purely on efficiency. 4. The Union Government rejected the Commission's recommendations, citing that the new performance-based metrics undermined fiscal continuity. Select the correct option:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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1 and 2 only
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