SSC CGL Finance – Finance Commission – Exam-Level Drill

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SSC CGL Finance – Finance Commission – Exam-Level Drill – 10 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.  
As on 15 October 2026, according to fincomindia.nic.in, the Chairman of the Sixteenth Finance Commission is:

Correct Answer: B [Dr Arvind Panagariya]

Explanation:

fincomindia.nic.in home page (as on 15-10-2026).

2.  
According to PIB (1 February 2026), the Sixteenth FC submitted its report to the President on:

Correct Answer: C [17 November 2025]

Explanation:

Answer: 17 November 2025. PIB release PRID 2221390.

3.  
The vertical share of devolution recommended by the Sixteenth FC and accepted by the Government is:

Correct Answer: B [41%]

Explanation:

Retained at 41% (PIB, 01-02-2026).

4.  
Chronological order(1) Sixteenth FC constituted (2) Advance Cell set up in the Ministry of Finance (3) report submitted to the President (4) Government accepts the 41% share

Correct Answer: A [2, 1, 3, 4]

Explanation:

21-11-2022 → 31-12-2023 → 17-11-2025 → 01-02-2026.

5.  
Statement-basedConsider the Sixteenth FC's horizontal devolution:
I. Its population criterion uses the 2011 Census.
II. It reduced the minimum area share from 2% to 1.5%.
III. It uses the 1971 population as its main population criterion.
Which are correct?

Correct Answer: D [I and II only]

Explanation:

Report Vol. I, §2.17; 1971 appears only in the growth-rate measure.

6.  
Assertion–Reason
A: The Sixteenth FC's formula rewards States for their contribution to national growth.
R: It added a State's share in the national GDP as a criterion.

Correct Answer: C [Both A and R are true and R explains A]

Explanation:

Answer: Both A and R are true and R explains A. Report Vol. I, §2.16.

7.  
Match the followingMatch the Fifteenth FC criteria with their weights:
P. Income distance Q. Demographic performance R. Forest & ecology S. Tax & fiscal efforts
1. 45% 2. 12.5% 3. 10% 4. 2.5%

Correct Answer: B [P-1, Q-2, R-3, S-4]

Explanation:

Answer: P-1, Q-2, R-3, S-4. PIB, 01-02-2021.

8.  
With the Fifteenth FC's weights, a fictional State's shares (%) are: population 10, area 5, forest 8, income distance 12, tax effort 6, demographic performance 9. Its final share is:

Correct Answer: D [9.725%]

Explanation:

1.5 + 0.75 + 0.8 + 5.4 + 0.15 + 1.125 = 9.725.

9.  
In the Budget speech of 1 February 2026, the amount provided to the States for 2026-27 as Finance Commission grants was:

Correct Answer: C [₹ 1.4 lakh crore]

Explanation:

Answer: ₹ 1.4 lakh crore. PIB, 01-02-2026.

10.  
Odd one outwhich is NOT among the horizontal criteria listed in the Explanatory Memorandum on the Sixteenth FC's report?

Correct Answer: A [Tax & fiscal efforts]

Explanation:

The list: population, demographic performance, area, forest, income distance, contribution to GDP.

➤ 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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