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 per cent to 42 per cent 2. It has made recommendations concerning sector-specific grants

QUESTION

Medium

Indian Polity

Prelims 2015

With Reference to the Fourteenth Finance Commission, which of the following statements is/are correct?

It has increased the share of States in the central divisible pool from 32 per cent to 42 per cent
It has made recommendations concerning sector-specific grants

Select an option to attempt

Explanation

Statement 1 - Correct The Fourteenth Finance Commission indeed increased the devolution of tax revenue from the central government to the states.

Statement 2 - Incorrect While promoting formula-based devolution, the commission does not provided recommendations regarding sector-specific grants to ensure focus on critical areas.

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