14th Finance Commission Criteria for Horizontal Distribution
The Finance Commission recommends the distribution of divisible central taxes among states (horizontal distribution). The 14th Finance Commission, chaired by Dr. Y.V. Reddy, revised the criteria and their weightages significantly compared to previous commissions.
Criteria Weightages by 14th Finance Commission
The commission assigned weightages to several criteria for allocating funds. Among the options provided, the weightages were as follows:
| Criterion | Weightage (%) |
|---|---|
| Income Distance | 45% |
| Population | 17.5% |
| Area | 15% |
| Demographic Change | 10% |
| Forest & Ecology | 7.5% |
| Fiscal Discipline | 5% |
Identifying Least Weighted Criterion
Comparing the weightages assigned to the criteria mentioned in the options:
- Income distance: 45%
- Population: 17.5%
- Area: 15%
- Demographic change: 10%
The criterion of Demographic change received the least weightage (10%) among these options.
Therefore, the criterion that got the least weightage by the 14th Finance Commission while recommending horizontal distribution, from the given choices, is Demographic change.
Important Questions from Macroeconomics
- A less elastic IS curve means that :
- In Keynesian framework, at full employment, which of the following is/are true ?
(a) Supply curve in the short period is inelastic.
(b) The supply is influenced by the increase in the quantity of money.
Select the answer from the code given below : - When LM curve is vertical, which one of the following is correct ? An increase in money supply will lead to :
- Crowding out will emerge in the economy, if :
- Which among the following were neglected by Keynes in his theory of employment ?
