Indian Polity · Polity

With reference to the recommendations of the Finance Commission regarding tax devolution among States, consider the following statements: I. Horizontal devolution by the Finance Commission seeks to correct inter-State disparities primarily by assigning higher weight to population and income distance criteria. II. A reduction in the weight assigned to per capita income (or income distance) necessarily increases the share of relatively richer States in horizontal devolution. Which of the statements given above is/are correct?