According to the recommendations of the Twelfth Finance Commission, what percentage share of the net shareable proceeds of central taxes was to be devolved to state governments?

Introduction / Context:
In India, Finance Commissions recommend how tax revenues collected by the Union government should be shared with the states. The Twelfth Finance Commission (FC 12) was particularly important for setting the devolution formula for a specific period. This question asks you to recall the percentage share of the net proceeds of shareable central taxes that FC 12 recommended for state governments, a key figure in public finance and Indian economy GK.

Given Data / Assumptions:

• The question refers to the Twelfth Finance Commission, not any other commission.
• The subject is the share of states in the net proceeds of shareable central taxes.
• The options provide different percentages: 15, 20.5, 22, 30.5, and 33.
• We assume basic understanding that this percentage is a single numeric figure agreed for a given award period.

Concept / Approach:
The concept is core fiscal devolution. Each Finance Commission suggests how much of the union tax pool should go to states. The Twelfth Finance Commission clearly recommended that states together receive 30.5 percent of the net shareable central tax revenues. Lower figures such as 20.5 percent or 22 percent relate to earlier periods or different calculations, whereas 33 percent is associated with other later discussions and not with FC 12 itself.

Step-by-Step Solution:
Step 1: Identify that the commission in question is the Twelfth Finance Commission (FC 12). Step 2: Recall that FC 12 recommended increasing the share of states compared with earlier commissions. Step 3: Remember or look up the exact percentage recommended, which is 30.5 percent of net shareable central taxes. Step 4: Compare this figure with the options and confirm that 30.5 percent appears as one of the choices. Step 5: Select “30.5 percent” as the correct answer.

Verification / Alternative check:
A verification method is to recall that the Eleventh Finance Commission had recommended a lower share of around 29.5 percent, and that FC 12 increased this slightly to 30.5 percent. Later commissions adjusted the formula and sometimes considered additional criteria, but the 30.5 percent figure remains strongly associated with the Twelfth Finance Commission. Reading budget documents or commission summaries confirms this number, reinforcing your memory.

Why Other Options Are Wrong:
15 percent: Far too low and not associated with modern Finance Commission recommendations for tax devolution.
20.5 percent: Not linked to FC 12; may appear in other fiscal contexts but not here.
22 percent: Another distractor figure, not matching FC 12 recommendations for shareable central taxes.
33 percent: This might resemble later discussions about increasing state share, but it is not the percentage recommended by the Twelfth Finance Commission.

Common Pitfalls:
Students often confuse the percentages allotted by different Finance Commissions or mix up the share of states with separate grants and plan assistance. Another difficulty is remembering whether FC 12 recommended 30 percent or 30.5 percent. To avoid this, focus on the decimal detail: FC 12 specifically recommended 30.5 percent, so the half percentage point is a useful memory hook.

Final Answer:
The Twelfth Finance Commission recommended that states receive 30.5 percent of the net shareable proceeds of central taxes.