The Fifteenth Finance Commission considered three criteria—demographic performance, forest and ecology, and governance reforms—alongside population, area, and income distance for horizontal tax devolution. This approach reflects a holistic view of equitable resource allocation, emphasizing not just past population metrics, but also sustainable governance, ecological balance, and demographic management. Such criteria aim to incentivize states to invest in responsible governance and environmental management, thereby promoting overall development and fiscal health, which is critical for achieving socio-economic stability in a federal framework.