Consider the following statements: 1. The 15th Finance Commission used fiscal effort as a criterion for horizontal devolution unlike the 14th Finance Commission 2. Both the 14th and the 15th Finance Commission used pre-2011 demographic variables as a crit

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Q: 58 (CAPF/2024)
Consider the following statements:
1. The 15th Finance Commission used fiscal effort as a criterion for horizontal devolution unlike the 14th Finance Commission
2. Both the 14th and the 15th Finance Commission used pre-2011 demographic variables as a criteria for horizontal devolution
Which of the statements given above is/are correct?

question_subject: 

Polity

question_exam: 

CAPF

The 15th Finance Commission introduced fiscal effort as a criterion for horizontal devolution, which was not considered by the 14th Finance Commission. However, only the 14th Commission used pre-2011 demographic variables, so statement 2 is incorrect.