Which of the following is /are among the noticeable features of the recommendations of the Thirteenth Finance Commission? 1. A design for the Goods and Services Tax, and a compensation package linked to adherence to the proposed design 2. A design for the creation of lakhs of jobs in the next ten years in consonance with India’s demographic dividend 3. Devolution of a specified share of central taxes to local bodies as grants Select the correct answer using the codes given below:

QUESTION

Medium

Indian Polity

Prelims 2012

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:

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Explanation

The Thirteenth Finance Commission was tasked with making recommendations on the distribution of tax revenues between the Union and the States for the five years from 2010 to 2015.

The Thirteenth Finance Commission did make recommendations regarding the design and implementation of the Goods and Services Tax (GST) and suggested a compensation package for states to offset potential revenue losses from the transition to the GST system.
The Finance Commission is not responsible for job creation. Its mandate is to define the financial relations between the central government and the individual state governments.
One of the key functions of the Finance Commission is to recommend the principles governing the grants-in-aid to the states out of the Consolidated Fund of India. The Thirteenth Finance Commission also made recommendations for the devolution of a specified share of central taxes to local bodies.

Therefore, 1 and 3 are correct statements.

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