Consider the following statements regarding the Report of the Fifteenth Finance Commission XVFC It h...........

Economic Affairs Public Finance and Debt Management

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Consider the following statements regarding the Report of the Fifteenth Finance Commission (XVFC)

It has recommended a vertical devolution at 41 per cent from the divisible pool of taxes.
It has proposed a Modernisation Fund for Defence and Internal Security (MFDIS) under the Consolidated Fund of India.
It has recommended an All India Medical and Health Service under the All-India Services Act, 1951.

Select the correct statement.

1&2 only

2&3 only

1&3 only

All of the above

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Explanation:

In order to maintain predictability and stability of resources, especially during the pandemic, XVFC has recommended maintaining the vertical devolution at 41 per cent – the same as in report for 2020-21.

It is at the same level of 42 per cent of the divisible pool as recommended by FC-XIV. However, it has made the required adjustment of about 1 per cent due to the changed status of the erstwhile State of Jammu and Kashmir into the new Union Territories of Ladakh and Jammu and Kashmir.
The XVFC proposes that the Union Government may constitute in the Public Account of India, a dedicated non-lapsable fund, Modernisation Fund for Defence and Internal Security (MFDIS). The total indicative size of the proposed MFDIS over the period 2021-26 is Rs. 2,38,354 crores.
XVFC has recommend that health spending by States should be increased to more than 8 per cent of their budget by 2022.
Given the inter-State disparity in the availability of medical doctors, it is essential to constitute an All India Medical and Health Service as is envisaged under Section 2A of the All-India Services Act, 1951.

Hence only statements 1&3 are correct.