Explanation:

Only statements 1&3 are correct.

• The income distance criterion is one of the factors used by the Finance Commission to determine the allocation of resources to states. It is calculated as the difference between a state's per capita income and the state with the highest per capita income. Since southern states generally have higher per capita incomes, this can lead to a relative decrease in their resource allocation. Distance criterion means that the farther a State is from the highest income State, the higher its share. The Commission recommended a new fiscal management framework, which included targets for the Centre and states to reduce their fiscal deficits and debt levels over the medium term. The framework aimed to promote fiscal sustainability and improve the financial health of both central and state governments. 

• The Fifteenth Finance Commission used population data from the 2011 Census for making recommendations on the distribution of resources between the Centre and states.

Hence option 2nd is correct.