UPSC CSE Prelims
Question 87
Which of the following is/are among the noticeable features of the recommendations of the Thirteenth Finance Commission?
- A design for the Goods and Services Tax, and a compensation package linked to adherence to the proposed design
- A design for the creation of lakhs of jobs in the next ten years in consonance with India's demographic dividend
- Devolution of a specified share of central taxes to local bodies as grants
Select the correct answer using the codes given below:
View correct answer and explanation
Correct answer: C
Correct Option: C
Explanation: The Thirteenth Finance Commission addressed GST implementation incentives and provided formulas for grants to local bodies.
Statement/Item-wise Analysis:
1: Correct - It recommended a GST-related framework/incentive package for cooperative adoption.
2: Incorrect - Designing lakhs of jobs over the next decade was not a defining Finance Commission recommendation.
3: Correct - It recommended grants for Panchayats and municipalities linked to a share of divisible tax revenues.
Option-wise Analysis:
A: Incorrect - omits correct item 3.
B: Incorrect - includes incorrect item 2; omits correct item 1.
C: Correct - includes exactly the valid statements/items and excludes the invalid ones.
D: Incorrect - includes incorrect item 2.
Review Note: Distinguish its historical recommendations from subsequent GST legislation and Finance Commission formulas.