economics medium True/False

The 15th Finance Commission introduced a new criterion called 'Demographic Performance' to reward states that have successfully managed their population growth and achieved lower fertility rates.

  1. True
  2. False

Answer: True

Historically, Finance Commissions used the 1971 census data for population, which penalized states that had successfully controlled their population since then. To address this, the 15th FC used the 2011 census but introduced the 'Demographic Performance' criterion, assigning higher weightage to states with lower fertility rates to ensure they are not financially disadvantaged for their progressive social policies.

Topic Public Finance - Institutions
Exam Relevance UPSC Prelims, SSC CGL
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