As per the recommendations of the Twelfth Finance Commission, what should be the share of states in the net proceeds of shareable central taxes?

Introduction / Context:
This question again focuses on the recommendations of the Twelfth Finance Commission, but states the same concept in slightly different words. The idea is to reinforce your grasp of the exact percentage that states were to receive from the net proceeds of shareable central taxes. Correctly remembering such figures is important in public finance and Indian economy questions for civil services and banking exams.

Given Data / Assumptions:

• Commission referred to is the Twelfth Finance Commission.
• The subject is the share of states in net proceeds of shareable central taxes.
• Options are various percentage values: 20, 25.5, 30.5, 33, and 28.
• We assume awareness that only one of these is correct for FC 12.

Concept / Approach:
The concept is identical to that in the earlier related question: the Twelfth Finance Commission recommended that states together receive 30.5 percent of the net shareable central tax pool. This recommendation was part of a broader package to correct vertical imbalances between the Union and states. All other percentage figures in the options are distractors that correspond either to earlier recommendations, later demands, or no specific commission at all.

Step-by-Step Solution:
Step 1: Identify the reference to the Twelfth Finance Commission, not any other commission. Step 2: Recall that FC 12 recommended a 30.5 percent share for states. Step 3: Compare the percentage 30.5 with the given options and locate it as option C. Step 4: Confirm that 30.5 percent matches what you already know from standard economy notes. Step 5: Select “30.5 percent” as the correct answer.

Verification / Alternative check:
Verification is similar to the previous explanation. The Eleventh Finance Commission recommended a lower share, and the Thirteenth Commission later revised formulas again. But FC 12 is consistently associated with the figure 30.5 percent. Reading summaries of the Twelfth Finance Commission report or government budget annexures confirms this percentage as the state share in net central taxes for that award period.

Why Other Options Are Wrong:
20 percent: Too low and not related to FC 12 recommendations for shareable central taxes.
25.5 percent: May appear in other fiscal contexts but not as the FC 12 devolution rate.
33 percent: This figure can be associated with later debates on higher state shares but not with FC 12.
28 percent: Another distractor value with no direct link to the Twelfth Finance Commission's main devolution recommendation.

Common Pitfalls:
Because similar questions often repeat with slightly different wording, candidates can doubt themselves and change from the correct figure. Another pitfall is assuming that any higher number must be correct if it appears more generous. Instead, trust the specifically remembered figure 30.5 percent for the Twelfth Finance Commission and use repeated practice to fix it firmly in memory.

Final Answer:
As per the Twelfth Finance Commission, the share of states in the net proceeds of shareable central taxes was fixed at 30.5 percent.