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Chapters:
0:00 15th Finance Commission
0:10 Key Recommendations In The First Report (2020-21 Period)
6:20 Grants-in-aid
8:03 MCQ About 15th Finance Commission



Income distance: It is the distance of the state’s income from the state with the highest income.  The income of a state has been computed as average per capita GSDP during the three-year period between 2015-16 and 2017-18.  States with lower per capita income would be given a higher share to maintain equity among states.
Demographic performance:  The Commission used only 2011 population data for its recommendations. States with a lower fertility ratio will be scored higher on this criterion.
Forest and ecology: This criterion has been determined by calculating the share of dense forest of each state in the aggregate dense forest of all the states in the country.
Tax effort: This criterion will reward states with higher tax collection efficiency.  
Grants-in-aid
A) Revenue deficit grants: In 2020-21, 14 states are estimated to have an aggregate revenue deficit of Rs 74,340 crore post-devolution.  The Commission recommended revenue deficit grants for these states.
B) Grants to local bodies: The total grants to local bodies for 2020-21 has been fixed at Rs 90,000 crore, of which Rs 60,750 crore is recommended for rural local bodies and Rs 29,250 crore for urban local bodies.
C) Disaster risk management:  The Commission recommended setting up National and State Disaster Management Funds (NDMF and SDMF) for promoting local-level mitigation activities.
Sector specific grants will also be provided for various sectors. This will ensure effective implementation of the policies and will help to achieve the objectives. E.g. Nutrition, Police training, Judiciary, Housing etc. #ugcnet #doorsteptutor #examrace

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