Multiple Choice Questions on The fourteenth Finance Commission FFC has substantially enhanced the share of the States in the Cent........... for UPSC Civil Services Examination (General Studies) Preparation

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Multiple Choice Questions

The fourteenth Finance Commission FFC has substantially enhanced the share of the States in the Cent...........

Indian Polity Centre - State Relations
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    The fourteenth Finance Commission (FFC) has substantially enhanced the share of the States in the Central divisible pool from the current 32 % to 42 %. It is the biggest ever increase in

    Horizontal Tax Devolution

    Incorrect Answer

    Vertical Tax Devolution

    Correct Answer

    Both a and b

    Incorrect Answer

    Grants in Aid

    Incorrect Answer
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    Explanation:

     (i) Vertical tax Devolution: How gross tax revenues should be distributed between the Centre and States

    (ii) Horizontal tax Devolution: How the states’ tax quota should be apportioned between different states.

    So, it is biggest ever increase in Vertical tax devolution.

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