Home PYQs UPPSC UPPSC MCQs Prelims 1997 (GS Paper I)

Question

According to the 10th Finance Commission, the share of States in the divisible pool of taxes will be:

  1. 23 per cent
  2. 29 per cent
  3. 34 per cent
  4. 42 per cent

Answer:

Option D: 42 per cent

Detailed Solution:

The correct answer is “42 per cent”.

The 14th Finance Commission significantly increased the share of states in the divisible pool of taxes from 32% to 42%. This was a major step towards fiscal federalism in India.