SSC CGL Finance – Finance Commission – Level 3 · Challenge

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SSC CGL Finance – Finance Commission – Level 3 · Challenge – 8 questions, subject: Finance & Economics (Tier II Paper III). Every question has the correct answer with a one-line explanation; tap "Show Answer". Free practice for TNPSC, UPSC, SSC, Bank and RRB exams – Shanmugam IAS Academy, Coimbatore.

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1.  
Data tablea fictional State, Divya, with the Fifteenth FC's weights:
Divya's criterion shares (%): population 20, area 25, forest 40, income distance 35, tax effort 30, demographic performance 10.
Divya's final share is:

Correct Answer: A [28.500%]

Explanation:

3 + 3.75 + 4 + 15.75 + 0.75 + 1.25 = 28.5.

2.  
Simple income-distance rule: reference per capita income ₹ 4.0 lakh; three States with equal populations have ₹ 3.0, ₹ 2.5 and ₹ 2.0 lakh. The poorest State's share under this criterion is:

Correct Answer: C [44.44%]

Explanation:

Distances 1.0, 1.5, 2.0; 2.0 ÷ 4.5 = 44.44%.

3.  
The States' total devolution is ₹ 12 lakh crore and a State's horizontal share is 4.5%. It receives:

Correct Answer: D [₹ 54,000 crore]

Explanation:

Answer: ₹ 54,000 crore. 12 × 4.5% = 0.54 lakh crore.

4.  
True/false countHow many are correct?
(i) Article 280 provides for a Chairman and four other members.
(ii) Article 281 makes the Commission's recommendations binding on the Government.
(iii) The 1951 Act lists four fields from which members are chosen.
(iv) Surcharges are part of the divisible pool.
(v) The Sixteenth FC's award period begins on 1 April 2026.

Correct Answer: A [3]

Explanation:

(ii) Art. 281 only requires laying with a memorandum; (iv) surcharges are excluded.

5.  
Clauses (bb) and (c) of Article 280(3) were inserted by the:

Correct Answer: B [73rd and 74th Amendments respectively]

Explanation:

Panchayats (73rd) and Municipalities (74th), 1992.

6.  
The Constitution (80th Amendment) Act, 2000 gave effect to:

Correct Answer: C [the sharing of a part of the total of Union taxes (the Tenth FC's 'alternative scheme')]

Explanation:

Answer: the sharing of a part of the total of Union taxes (the Tenth FC's 'alternative scheme'). 80th Amendment.

7.  
Under the Fifteenth FC's weights (2021-26), a State has 6% of the 2011 population and 8% of the forest & ecology criterion. These two criteria add how many percentage points to its final share?

Correct Answer: D [1.70]

Explanation:

Population 15% × 6 = 0.90; forest & ecology 10% × 8 = 0.80; total 1.70.

8.  
Under the Fifteenth Finance Commission (2021-26), the weight given to area in horizontal devolution was:

Correct Answer: A [15%]

Explanation:

15th FC: income distance 45, population 15, area 15, demographic performance 12.5, forest & ecology 10, tax & fiscal efforts 2.5 (PIB, 01-02-2021).

➤ Full notes, shortcuts and every answer explained – SSC CGL 2026 Finance & Economics (Tier II Paper III) book (₹149): www.shanmugamiasacademy.in/study-materials/ssc-cgl-finance-economics

📘 SSC CGL 2026 – General Studies – Finance & Economics (Tier II Paper III)
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