CLAT GurukulSamudraManthan

Topic 002 · Answers

16th Finance Commission report 2026-31

All 10 answers, each with its Book 1 RATNA fact. Try the questions first

  1. Question 1Answer C

    On which date was the Sixteenth Finance Commission's report for 2026-31 tabled?

    • 31 January 2026
    • 15 February 2026
    • Correct answer: 1 February 2026
    • 1 March 2026

    Core Trigger: The Sixteenth Finance Commission's report for 2026-31 was tabled on 1 February 2026.From Book 1 RATNA, topic 002, point 1

  2. Question 2Answer C

    What share of central taxes did the report retain for the States?

    • 42 per cent
    • 40 per cent
    • Correct answer: 41 per cent
    • 50 per cent

    Vertical Share: The report retained the States' share of central taxes at 41 per cent.From Book 1 RATNA, topic 002, point 2

  3. Question 3Answer B

    Who chaired the Sixteenth Finance Commission?

    • N. K. Singh
    • Correct answer: Dr Arvind Panagariya
    • Y. V. Reddy
    • Vijay Kelkar

    Current Head: Dr Arvind Panagariya chaired the Sixteenth Finance Commission.From Book 1 RATNA, topic 002, point 3

  4. Question 4Answer B

    What weight does the new contribution-to-GDP criterion carry in dividing the States' share?

    • 5 per cent
    • Correct answer: 10 per cent
    • 15 per cent
    • 20 per cent

    New Criterion: A new contribution-to-GDP criterion carries 10 per cent weight in dividing the States' share.From Book 1 RATNA, topic 002, point 4

  5. Question 5Answer C

    Consider the statements: 1. Tax effort was dropped as a criterion. 2. Population weight rose to 17.5 per cent. Which is/are correct?

    • Only 1
    • Only 2
    • Correct answer: Both 1 and 2
    • Neither

    Formula Changes: Tax effort was dropped as a criterion, and population weight rose to 17.5 per cent.From Book 1 RATNA, topic 002, point 5

  6. Question 6Answer A

    For how many years from 2026-27 does the Commission's formula decide fiscal transfers to States?

    • Correct answer: Five years
    • Three years
    • Four years
    • Six years

    India Link: The formula decides fiscal transfers to States for the five years from 2026-27, shaping their budgets.From Book 1 RATNA, topic 002, point 7

  7. Question 7Answer A

    At which city was the report laid before Parliament?

    • Correct answer: New Delhi
    • Mumbai
    • Kolkata
    • Hyderabad

    Venue: The report was laid before Parliament at New Delhi.From Book 1 RATNA, topic 002, point 8

  8. Question 8Answer D

    Who headed the first Finance Commission, constituted in 1951?

    • C. D. Deshmukh
    • K. Santhanam
    • A. K. Chanda
    • Correct answer: K. C. Neogy

    Founded: The first Finance Commission was constituted in 1951 under K. C. Neogy.From Book 1 RATNA, topic 002, point 9

  9. Question 9Answer B

    Which Act governs the qualifications of Finance Commission members and its powers?

    • Finance Commission (Powers) Act, 1956
    • Correct answer: Finance Commission (Miscellaneous Provisions) Act, 1951
    • Fiscal Responsibility and Budget Management Act, 2003
    • Central Taxes Distribution Act, 1951

    Governing Act: The Finance Commission (Miscellaneous Provisions) Act, 1951 governs members' qualifications and the Commission's powers.From Book 1 RATNA, topic 002, point 10

  10. Question 10Answer A

    Consider the statements: 1. Vertical devolution is the Union-State split of taxes. 2. Horizontal devolution is the division of the Union's share among Union Territories. Which is/are correct?

    • Correct answer: Only 1
    • Only 2
    • Both 1 and 2
    • Neither

    Doctrine: Vertical devolution is the Union-State split of taxes; horizontal devolution is the division of the States' share among States.From Book 1 RATNA, topic 002, point 12

Open these answers in the app (sign-in needed)