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:

The correct answer is 1 and 3 only.

Key Points

Recommendations of Thirteenth Financial Commission-

• It recommended that both Center and the states should conclude a 'Grand Bargain' to implement model GST. 
• To incentivize implementation of the Grand Bargain, this Commission recommends sanction of a grant of Rs. 50,000 crore.
• A design for the Goods and Services Tax, and a compensation package linked to adherence to the proposed design. Hence statement 1 is correct.
• Devolution of a specified share of central taxes to local bodies as grants. Hence statement 3 is correct.
• Fiscal Responsibility and Budget Management Act, 2003 need to be amended to mention the nature of shocks which shall require targets relaxation.
• Fiscal deficit to be reduced to 3% of the gross domestic product (GDP) by 2014–2015.
• No such mentions for a design for the creation of lakhs of jobs in the next ten years in consonance with India's demographic dividend. Hence statement 2 is not correct.

Additional Information

 Thirteenth Financial Commission-

• Constituted on 13th November 2007 under the chairmanship of Vijay L Kelkar.
• Members of the Commission were:
  • Dr. Vijay L. Kelkar, Chairman
  • B.K. Chaturvedi, Part-time
  • Dr. Indira Rajaraman
  • Prof. Atul Sarma
  • Dr. Sanjiv Misra
  • Shri Sumit Bose, Secretary
• The 1st Finance Commission was constituted on 22nd November 1951 under the chairmanship of K.C. Neogi.