UPSC Prelims 2012 · GS Paper I
Question 33: Economy and Social Development
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 :
AnswerUPSC’s answer is (c).
The Thirteenth Finance Commission (2010-15) recommended a design for the Goods and Services Tax and a compensation package for States linked to their adherence to that design. It also recommended grants to local bodies as a specified share of the divisible pool of central taxes. Creating jobs for the demographic dividend is not a Finance Commission matter.
- 1. It proposed a GST design and compensation tied to adhering to it.
- 2. Designing job creation is not a Finance Commission recommendation.
- 3. It recommended grants to local bodies as a share of the divisible pool.
How you could have got this
- If you were sure statement 2 is not correct, (b) and (d) go: each of them includes 2.
What you needed to know: Designing job creation is not a Finance Commission recommendation.
- Then, if you were sure statement 3 is correct, (a) goes: it leaves 3 out.
What you needed to know: It recommended grants to local bodies as a share of the divisible pool.
Only (c) is left. You didn’t need statement 1.
Which options go is worked out from UPSC’s key and the options, not by a model.
Why each option is right or wrong
- (a) Incomplete: grants to local bodies from a share of central taxes were also recommended.
- (b) Wrong: job creation was not among its recommendations.
- (c) Correct: GST design with compensation, and local body grants.
- (d) Wrong: statement 2 on creating lakhs of jobs was not a recommendation.
Answer: UPSC’s key. Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 2012, General Studies Paper I, Series A. The paper on upsc.gov.in.