Question

According to the Tenth Finance Commission the share of resources to be share of resources to be transferred to States from the divisible pool will be:

  1. 29%
  2. 42%
  3. 47.5%
  4. 25%

Answer:

Option B: 42%

Detailed Solution:

The correct answer is “42%”.

The Tenth Finance Commission significantly increased the share of resources transferred to states from the divisible pool to 42%. This was a major step towards fiscal federalism in India.