Which of the following is/are among the noticeable features of the recommendations of the Thirteenth Finance Commission?1. A design for the Goods and Services Tax, and a compensation package linked to adherence to the proposed design.2. A design for the creation of lakhs of jobs in the next ten years in consonance with India’s demographic dividend.3. Devolution of a specified share of central taxes to local bodies as grants.Select the correct answer using the codes given below:
✓ Correct answer: c) 1 and 3 only
ExplanationStatement 1 is correct: One of the notable recommendations made by the Thirteenth Finance Commission was related to the Goods and Services Tax (GST).The Commission recommended the introduction of a GST system as a comprehensive indirect tax reform.Additionally, it proposed a compensation mechanism for states that would face revenue losses during the implementation of the GST.The compensation package was meant to ensure that states did not suffer a revenue shortfall when transitioning from the existing system of sales tax and other taxes to the unified GST.The implementation of GST was linked to a timeline, and the Commission suggested setting up a GST compensation fund.Statement 2 is incorrect: While the Thirteenth Finance Commission did acknowledge the importance of utilizing India’s demographic dividend (the large working-age population), it did not specifically design a detailed job creation strategy or suggest a mechanism for creating lakhs of jobs in the next decade.The Commission focused more on fiscal and financial management, including issues related to devolution of fu
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