GK Quiz on 15th Finance Commission Report

Take the following GK Quiz based on 15th Finance Commission Report submitted to the President. The 15th Finance Commission submitted its report for the period 2021-22 to 2025-26 to President Ram Nath Kovind in November 2020. Take a look at the questions below.
Created On: Aug 19, 2021 19:30 IST
Modified On: Aug 19, 2021 19:32 IST
GK Quiz on 15th Finance Commission Report (2021-22 to 2025-26)
GK Quiz on 15th Finance Commission Report (2021-22 to 2025-26)

Aspirants of UPSC IAS, SSC, IES, and other competitive exams can take this quiz on the 15th Finance Commission Report to test their knowledge. The Fifteenth Finance Commission (XV-FC) led by Chairman N. K. Singh submitted its report for the period 2021-22 to 2025-26 to President Ram Nath Kovind. The report of the Fifteenth Finance Commission, along with an Action Taken Report, was tabled in Parliament on January 30, 2020. 

 

1. With respect to the 15th Finance Commission, consider the following statements:

  1. The term of the 15th Finance Commission was extended for two years recently.
  2. Its recommendations will be applicable for six years and not the conventional five-year period.

Which of the statement(s) given above is/are correct?

  1. 1 only
  2.  2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

Answer: b

Explanation:

The Union Cabinet, in November 2019 approved the extension of the term of the 15th Finance Commission, which had to submit two reports.

The term was extended till October 30, 2020 (11 months). The first report, for the financial year 2020-21, was submitted on January 30, 2020, before the Union Budget, and the second report for the period 2021-26 was presented on November 9, 2020.

This effectively means that the 15th Finance Commission’s recommendations will be applicable for six years and not the conventional five-year period. 

2. What is the title of this year’s report?

  1. 15th Finance Commission Report
  2. Recommendations in Covid times
  3. Finance Commission in COVID Times
  4. 15th Finance Commission Recommendations

Answer: c

Explanation:

 The cover of this year's report reads: 'Finance Commission in Covid Times' and the scales are used to represent the balance between the States and the Union. 

3. The Volume III of the 15th Finance Commission Report addresses issues related to:

  1. State-specific Considerations
  2. Union Government
  3. Main Report and Annexes.
  4. Finances of Each State

Answer: b

Explanation:

Volume III of the 15th Finance Commission Report is devoted to the Union Government and contains key departments in greater depth, with the medium-term challenges and the roadmap ahead. 

4. Which of the following is/are not recommended in the 15th Finance Commission Report?

  1. Grants to States are divided into - Panchayats and Municipal Bodies
  2. Performance-based grants and Sector-specific grants
  3. Setting up of District Disaster Management Funds
  4. Setting up of State Disaster Management Fund
  1. 3 only
  2. 1 and 4 only
  3. 1 and 3 only
  4. All of the above

Answer: c

Explanation:

Grants to States are divided into - Panchayats and Municipal Bodies” was a recommendation made by the 14th Finance Commission. Statement 1 is incorrect

The 15th Finance Commission has recommended a total of Rs 90,000 crore for grants to the local bodies in 2020-21.  This amounts to an increase over the Rs 87,352 crore allocated for 2019-20 for the same. Statement 2 is correct.

To promote local-level mitigation activities, the Commission has recommended the setting up of National and State Disaster Management Funds. Hence, Statement 3 is incorrect but 4 is correct.

5. Who is the Chairman of the 15th Finance Commission?

  1. Dr. Y. V. Reddy
  2. G. C. Murmu
  3. Nand Kishore Singh
  4. Arvind Mehta

Answer: c

Explanation:

Dr. Y. V. Reddy was the Chairman of the 14th Finance Commission

C. Murmu is the Comptroller and Auditor General of India

Arvind Mehta is the Secretary of the 15th Finance Commission

6. With respect to the Finance Commission, consider the following statements:

  1. The Finance Commission is a statutory body
  2. Recommendations made by the Finance Commission are only advisory in nature

Which of the statement(s) given above is/are incorrect?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

Answer: a

Explanation:

Finance Commission is a Constitutional body periodically constituted by the President of India under Article 280 of the Indian Constitution to define the financial relations between the central government of India and the individual state governments. Statement 1 is incorrect.

7. When is the report submitted by the Finance Commission available in the public domain?

  1. After the submission of the report to the President.
  2. After the approval of the President
  3. After it is presented to Prime Minister
  4. After the report is tabled in the Parliament

Answer: d

Explanation:

The report is presented to Prime Minister and is available in the public domain once it is tabled in the Parliament by the government along with an action taken report on its recommendations.

8. As per the recommendations, the State's share in the divisible pool of taxes for FY 2020-21 should be reduced from 42% to

  1. 41%
  2. 35%
  3. 39%
  4. 40%

Answer: a

Explanation: 

The report reduced the State's share in the divisible pool of taxes from 42% to 41% for the current year, after the dissolution of Jammu and Kashmir as a State. 

9. Which are the two base years of the population taken by the 15th Finance Commission for the tax calculation for states?

  1. 1971 and 2001
  2. 1971
  3. 2011
  4. 1971, 2011

Answer: c

Explanation:

The Fifteenth Finance Commission (FC) has considered the 2011 population along with forest cover, tax effort, area of the state, and “demographic performance” to arrive at the states' share in the divisible pool of taxes.

10. Which of the following is not a member of the 15th Finance Commission?

  1. Dr. Rajiv Kumar
  2. Dr. Ashok Lahiri
  3. Ajay Narayan Jha
  4. Dr. Ramesh Chand 

Answer: a

Explanation:

Dr. Rajiv Kumar is the Vice Chairperson of Niti Aayog

You can also read more about the 15th Finance Commission and other related details from the links provided below: 

All you need to know about 15th Finance Commission Report 

15th Finance Commission: Meaning, Facts, Members and Terms of Reference (2020-21)

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  • ROSSMar 20, 2021
    very helpful compilation