Q. Which of the following statements with regard to recommendations of the 15th Finance Commission of India are correct?

Explanation : 

I. It has recommended grants of ₹4,800 crores from the year 2022-23 to the year 2025-26 for incentivizing States to enhance educational outcomes.

This statement is correct. The 15th Finance Commission recommended grants of ₹4,800 crore (₹1,200 crore each year) from 2022-23 to 2025-26 to incentivize states to improve educational outcomes.

II. 45% of the net proceeds of Union taxes are to be shared with States.

This statement is incorrect. The 15th Finance Commission recommended that the states’ share in the central taxes (vertical devolution) be maintained at 41% for the period 2021-26. This is a 1% decrease from the 42% recommended by the 14th Finance Commission, adjusted due to the formation of the new Union Territories of Jammu and Kashmir and Ladakh.

III. 45,000 crores are to be kept as performance-based incentive for all States for carrying out agricultural reforms.

This statement is correct. The Commission recommended ₹45,000 crore as a performance-based incentive for all states to carry out agricultural reforms.

IV. It reintroduced tax effort criteria to reward fiscal performance.

This statement is correct. The 15th Finance Commission reintroduced a tax effort criterion to reward fiscal performance, assigning it a weightage of 2.5% for horizontal devolution.

Based on the analysis, statements I, III, and IV are correct. Correct Answer: C