Economics · Economy
With reference to the criteria for horizontal devolution of taxes among States by the Finance Commissions in India, consider the following parameters: I. Income Distance / Distance in per capita Gross State Domestic Product II. Contribution to Gross Domestic Product III. Area of the State IV. Tax and fiscal efforts How many of the above parameters have been used as criteria for determining the inter-State distribution of tax devolution?
- 1All four
- 2Only three✓
- 3Only two
- 4Only one
Correct answer
Only three
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