Question
With reference to the Fourteenth Finance Commission, which of the following statements is/are correct?
1. It has increased the share of States in the central divisible pool from 32 percent to 42 percent.
2. It has made recommendations concerning sector-specific grants.
Select the correct answer using the code given below:
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer:
A
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Explanation:
The main focus of the Fourteenth Finance Commission was to enhance the share of states in the central divisible pool, as mentioned in statement 1. The commission increased the share of states in the central divisible pool from 32 percent to 42 percent, providing states with a greater share of central taxes and more fiscal autonomy.
There were no recommendations made regarding sector-specific grants by the Fourteenth Finance Commission.