WBCS.LIVE practice question

The "Alternative Scheme of Devolution" of revenue between the Centre and States was introduced by which act?

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. 79th Amendment Act, 1999
  2. 81st Amendment Act, 2000
  3. 80th Amendment Act, 2000
  4. 82nd Amendment Act, 2000

Correct answer and explanation

Correct answer: 80th Amendment Act, 2000

Explanation: āœ… Correct Answer: C) 80th Amendment Act, 2000 šŸ“š Explanation: The 80th Amendment Act of 2000 implemented the "Alternative Scheme of Devolution" based on the Tenth Finance Commission's report. It simplified the way tax revenue is shared between the central government and the states. Under this scheme, 29% of the total income from all central taxes and duties was to be distributed among the states. This replaced the older, more complex system of sharing only specific types of taxes.