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 percent to 42 percent.
- It has made recommendations concerning sector-specific grants.
Select the correct answer using the code given below.
1 only
2 only
Both 1 and 2
Neither 1 nor 2
Answer is Wrong!
Answer is Right!
This question was previously asked in
UPSC IAS – 2015
Statement 2 is correct. While the 14th FC focused on increasing the untied share of states in central taxes, it also made recommendations concerning various grants, including grants to local bodies (Panchayats and Municipalities) and sector-specific grants, particularly for health and education, although the emphasis on tied sector-specific grants was reduced compared to earlier commissions.