What is the percentage of tax devolution to the State from the Central taxes as per the 15th Finance Commission recommendations for 2021 – 2026 ?
- ((a))
44
- ((b))
43
- ((c))
42
- ((d))
41
Show Answer
41
The correct answer is 41.

Key Points
- In November 2017, the President of India appointed NK Singh as the chairperson of the 15th Finance Commission.
- The recommendations it makes will apply to the five years from 2021–2022 through 2025–2026.
- It is advised that states pay 41% of the central taxes from 2021 to 2026, the same as they did from 2020 to 21.

Additional Information
- Other recommendations made by 15th Finance Commission:
- The vertical devolution has been advised to remain at 41%, as it was in its interim report for 2020–21.
- It has recommended a weighting of 12.5% for demographic performance, 45% for income, 15% for population and area, 10% for forest and ecology, and 2.5% for tax and fiscal initiatives for horizontal devolution.
- It has suggested grants to cover the post-devolution revenue imbalance totaling roughly Rs. 3 trillion over the five years ending in FY26.
- The expected Gross Revenue Receipts to the Union from all 15th Finance Commission transfers (devolution + grants) amount to roughly 34%, which leaves the Union with enough financial room to meet its resource needs.






















