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Q2·GS Paper 1 · Prelims 2015

Fourteenth Finance Commission Recommendations

PolityFinance CommissionStatement-basedMediumStatic

Question

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

1It has increased the share of States in the central divisible pool from 32 percent to 42 percent.
2It has made recommendations concerning sector-specific grants.

Select the correct answer using the code given below.

  1. 1.

    It has increased the share of States in the central divisible pool from 32 percent to 42 percent.

  2. 2.

    It has made recommendations concerning sector-specific grants.

Options

a

1 only

b

2 only

c

Both 1 and 2

Answer
d

Neither 1 nor 2

Explanation

The Fourteenth Finance Commission (2015-2020), headed by Y.V. Reddy, made two significant recommendations: (1) It increased the share of States in the central divisible pool from 32% to 42%, which was a substantial increase aimed at decentralizing fiscal resources. (2) It also made sector-specific grant recommendations for various developmental priorities. Both statements are factually correct based on the commission's actual recommendations. > XIV FC increased devolution to States from 32% to 42%, strengthening federalism and state autonomy. Answer: (c).

Question details

Year

2015

Paper

GS Paper 1

Question

Q2

Subject

Polity

Sub-topic

Finance Commission

Type

Statement-based

Difficulty

Medium

Nature

Static

Source hint

Current Affairs 2014-2015

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