The Fifteenth Finance Commission (XVFC) recommended the following criteria and weights for horizontal tax devolution among states for the 2021-26 period:

1. Income Distance (45%): The distance of a state’s income from the state with the highest income.
2. Population (15%): Based on the 2011 Census data.
3. Area (15%): To account for the higher cost of providing services in larger geographical areas.
4. Forest and Ecology (10%): Calculated based on the share of the dense forest of each state in the total dense forest of all states.
5. Demographic Performance (12.5%): This criterion was introduced to reward states that have made progress in lowering their fertility rates (using 1971 population data as a benchmark).
6. Tax and Fiscal Efforts (2.5%): To reward states with higher tax collection efficiency.

Analysis of the given list:

• Demographic performance: Included (Criterion 5)
• Forest and ecology: Included (Criterion 4)
• Tax and fiscal efforts: Included (Criterion 6)
• Governance reforms: Not included as a criterion for horizontal devolution.
• Stable government: Not included as a criterion for horizontal devolution.

Apart from population, area, and income distance, the Commission used three criteria from the list provided (Demographic performance, Forest and ecology, and Tax and fiscal efforts).